What is the dependency between the Dryject franchisee's failure to submit financial reports and the termination of the agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith.
Such defaults include, but are not limited to:
(i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our System Standards;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our System Standards, or Your failure to maintain Our System Standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
(vi) A failure by You to accurately or completely record all sales made in, upon or from the Franchised Business at the time of sale;
(vii) A breach by You of any other covenant, term, or provision of this Agreement;
(viii) A failure by You to open the Franchised Business within one hundred and eighty (180) days of the execution of this Agreement;
(ix) A failure by You to comply with any of Your agreements with any third parties as related to the Franchised Business; or,
(x) A failure by You to consistently pay the debts of the Franchised Business as they become due.
(c) In the event You are delivered two (2) or more notices of Material Breach from Us within a twelve (12) month period pertaining to any one (1) or more of the foregoing events of default whether or not cured after notice, during the initial Term or any renewal terms of this Agreement, We shall have the right to terminate this Agreement.
The effective date of any such termination notice under this Subsection shall be upon the expiration of Your receipt of three (3) days written notice to that effect, or such longer period as may be required by law.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, failing to submit financial reports or provide other required information can lead to a default under the Franchise Agreement. Specifically, if a Dryject franchisee fails to submit financial reports or allow access to their records within the required timeframes, it constitutes a default.
If Dryject delivers two or more notices of material breach within a 12-month period for any default, including failure to submit financial reports, Dryject has the right to terminate the agreement. The termination becomes effective three days after the franchisee receives written notice, or longer if required by law.
To avoid potential termination, a prospective Dryject franchisee must ensure timely and accurate submission of all required financial reports and records. They should also maintain organized records and be prepared to provide access to Dryject's authorized personnel or accountants for inspections and audits. Understanding and adhering to these requirements is crucial for maintaining a good standing and avoiding default under the Dryject Franchise Agreement.