For Dryject, what events are included in the definition of 'Termination' of the Franchise Agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Subsection in its entirety.
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- Deferral of Initial Fees. Sections 7(a) and 7(b) of the Franchise Agreement is amended by adding the following: All initial franchise fees shall be deferred until such time as the franchisee is open for business.
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- Commencement of Operations. Section 3 of the Agreement is amended by deleting the last sentence in its entirety and replacing it with the following:
"In the event Franchise Owner does not commence operating the Franchised Business within the time period set forth herein, this Agreement shall be deemed terminated, and the Initial Franchise Fee may be kept by the Company to reimburse itself for lost opportunity costs, costs and/or expenses."
- Termination. Section 32 of the Agreement is amended to add the following:
With respect to franchises governed by Minnesota Law, DryJect® will comply with Minn. Stat. Sec. 80c.14, subds. 3, 4, and 5, which require, except in certain specified cases, that Franchise Owner be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld.
6.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, if a Franchise Owner does not commence operating the Franchised Business within the time period set forth in the agreement, the agreement will be deemed terminated. In this case, Dryject may keep the Initial Franchise Fee to reimburse itself for lost opportunity costs, costs, and/or expenses.
For franchises governed by Minnesota law, Dryject will comply with Minn. Stat. Sec. 80c.14, subds. 3, 4, and 5. These statutes require that the Franchise Owner be given 90 days' notice of termination (with 60 days to cure) except in certain specified cases. Additionally, 180 days’ notice is required for nonrenewal of the franchise agreement. Consent to the transfer of the franchise will not be unreasonably withheld.
For franchisees in Wisconsin, the Wisconsin Fair Dealership Law grants the Franchise Owner the right, in most circumstances, to 90 days prior written notice to termination and 60 days within which to remedy any claimed deficiencies. The termination provisions in Section 32 of the Dryject Franchise Agreement will be superseded by the requirements of the Wisconsin Fair Dealership Law and will have no force or effect to the extent that they are inconsistent.