What is the duration of the non-compete period for the Signer after the termination or expiration of the Dryject franchise agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Except to the extent prohibited by the laws of the state where the Franchised Business is located, in order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
- (a) Directly or indirectly, for himself/herself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States; or
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Signer, typically the spouse or domestic partner of the franchisee, is subject to a non-compete agreement. This agreement restricts the Signer from engaging in activities that could harm Dryject's business interests. Specifically, the non-compete period lasts for two years following the termination or expiration of the franchisee's Dryject Franchise Agreement.
During this two-year period, the Signer is prohibited from directly or indirectly engaging in any business that is the same as or similar to Dryject's services. This includes involvement as an owner, advisor, lender, or any other capacity that provides a financial or beneficial interest in a competing business. The restriction applies to businesses located within the United States.
This non-compete agreement is designed to protect Dryject's goodwill, trade secrets, and unique qualities of the Dryject system. By preventing the Signer from participating in a competing business, Dryject aims to maintain its market position and prevent the unauthorized use of confidential information. The agreement acknowledges that the Signer may have access to Dryject's trade secrets as the franchisee develops and maintains their business using the Dryject system, making the non-compete provision a crucial element of the franchise agreement.