What is the 'Designated Territory' in the Dryject agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
m, Marks and goodwill to establish and operate a DryJect franchised business in the territory described, and upon the terms and conditions set forth, in this Agreement;
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- The terms and conditions of this Agreement are reasonably necessary to maintain Our uniform System Standards of quality and service and to protect the goodwill of Our Licensed Rights;
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- You acknowledge and agree that, in the administration of this Agreement and in taking actions with respect to Our relationship with You, We must take into account the needs of the System, and the effect upon the System as a whole, and the need to protect the Marks for the benefit of the System; and,
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- The territory described in Addendum A to this Agreement is being made available by Us as a territory for a DryJect franchised business ("Designated Territory").
In consideration of the respective representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows:
1. INCORPORATION OF RECITALS
The Recitals above are incorporated herein by reference.
2. GRANT OF FRANCHISE
On the terms and conditions of this Agreement, We hereby grant to You the right to establish and operate a DryJect franchise (the "Franchise" or "Franchised Business") and to use the Licensed Rights associated with the Franchised Business and developed by Us. The Franchise is granted for the area set out in the attached Addendum A to this Agreement, entitled Franchisee's Designated Territory.
The Franchised Business described in this Section will service an area more particularly described in Section 4 of this Agreement.
3. GRANT OF LICENSED RIGHTS
(a) Subject to the terms and conditions of this Agreement, We grant to You the right to use Our Licensed Rights in the establishment and operation of the Franchised Business. You
acknowledge Our sole and exclusive right to use the DryJect Marks in connection with the products and services to which they are or may be applied by Us, and represent, warrant and agree that, neither during the Term of this Agreement nor after its expiration or other termination, shall You directly or indirectly contest, or aid in contesting, the validity or ownership of the Licensed Rights, or take any action whatsoever in derogation of the rights claimed by Us in this Agreement.
- (b) Nothing contained in this Agreement shall be construed to vest in You any right, title or interest in or to the Licensed Rights, the goodwill now or hereafter associated with such rights, other than the rights and license expressly granted to You in this Agreement. Any and all goodwill associated with or identified by the Licensed Rights shall inure directly and exclusively to Our benefit and is Our property.
- (c) No advertising or other use of the DryJect Marks by You shall contain any statement or material which, in Our sole judgment, We consider to be in bad taste or inconsistent with DryJect's public image, or tends to bring disparagement, ridicule or scorn upon Us or Our affiliates or predecessors or successors or the DryJect Marks, or diminish Our associated goodwill. You shall not make any use of the DryJect Marks or any advertising material that We have disapproved for any of the reasons set forth in this Section.
- (d) You shall adopt and use the Licensed Rights only in the manner provided to You by Us in the Operations Manual (including any brand standards) or as otherwise expressly approved by Us.
4. TERRITORY
- (a) You shall have the right to operate a DryJect Franchised Business, and to use Our Licensed Rights in Franchisee's Designated Territory. We will not grant to others (nor reserve unto ourselves except as specified in this Agreement) the right to operate a DryJect business within Your Designated Territory. However, We reserve the right to establish policies pertaining to the sale of products and services at discounted rates to customers operating multiple facilities, some of which may be located within Your Designated Territory ("Reserved Accounts").
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the 'Designated Territory' for a franchisee is defined within Addendum A of the franchise agreement. Dryject grants the franchisee the right to operate a DryJect franchised business and use their licensed rights within this designated territory.
However, Dryject retains certain rights within the franchisee's designated territory. They can establish policies for discounted rates to customers operating multiple facilities, even if some are within the franchisee's territory; these are termed "Reserved Accounts." If the franchisee cannot or will not service a Reserved Account at the discounted rate, Dryject or another franchisee may step in, and the original franchisee will not receive compensation for that transaction.
Dryject also reserves the right to use and franchise other trade names and trademarks they develop in the future, even within a franchisee's designated territory, as long as these are not designated as Licensed Rights. The franchisee is not automatically granted rights to acquire additional franchises within their designated territory or any adjacent territories. Furthermore, Dryject can develop additional distribution methods for trademarked merchandise, such as through wholesalers and retailers, within the franchisee's territory, but not for DryJect turf aeration services.
Dryject also retains the right to purchase, merge, acquire, be acquired by or affiliate with an existing competitive or non-competitive franchise or non-franchise network, chain or any other business regardless of the location of that other business' facilities, and that following such activity Dryject may operate, franchise or license those other businesses and/or facilities under any names or marks other than the Dryject Marks, regardless of the location of these businesses and/or facilities, which may be within the Designated Territory or immediately proximate to the Designated Territory. The franchisee's designated territory can only be altered if the franchisee is not in compliance with the terms of the agreement. The franchisee is restricted from accepting business or performing services outside their designated territory without prior written approval from Dryject. Accepting business from outside the designated territory, which business is located in another franchise owner's designated territory, may result in Dryject requiring the franchisee to forfeit all gross revenues earned in the designated territory to the franchise owner who operates within that territory. However, the franchisee may accept business resulting from referrals or unsolicited inquiries from customers outside their designated territory if that business is not located in another franchise owner's designated territory.