What is the dependency between the Dryject franchisee's payment of debts and the termination of the agreement?

According to the 2025 Dryject Franchise Disclosure Document, a franchisee's failure to meet their financial obligations under any agreement with Dryject or its affiliates can trigger a default, potentially leading to the termination of the franchise agreement. This is due to a cross-default clause in the agreement.

Specifically, if a Dryject franchisee defaults on any agreement with Dryject or its affiliates, it is considered a default under the franchise agreement itself. Conversely, any default under the franchise agreement is considered a default under all other agreements between the parties.

This cross-default provision grants Dryject the right to terminate all agreements with the franchisee if the nature of the default under any other agreement would have allowed termination had the default occurred under the franchise agreement. This means that financial stability and adherence to all contractual obligations with Dryject are critical for maintaining the franchise agreement. A prospective franchisee should carefully review all related agreements to fully understand the scope of this cross-default provision and its potential impact.