What evidence supports the Dryject franchisor's rights to telephone numbers after termination?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
lassified, yellowpage, and other telephone directory listings (collectively, the "Numbers and Listings") related to the Franchised Business or the Marks (all of which right, title, and interest is referred to herein as "Franchisee's Interest").
- 2.2 Transfer. On Termination of the Franchise Agreement, if Franchisor directs Franchisee to do so, Franchisee will immediately direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Numbers and Listings: (i) to transfer all Franchisee's Interest in such Telephone Numbers and Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Telephone Numbers and Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Numbers and Listings or will take such other actions with respect to the Telephone Numbers and Listings as Franchisor directs.
- 2.3 Appointment; Power of Attorney. Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Telephone Listing Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, on Termination of the Franchise Agreement, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Telephone Listing Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject retains significant rights regarding telephone numbers and listings associated with the franchise after termination of the franchise agreement. Dryject can direct telephone companies to transfer all of the franchisee's interest in telephone numbers and listings to Dryject. Alternatively, Dryject can instruct the telephone companies to terminate these numbers and listings. To facilitate this, the franchisee grants Dryject the authority to execute the necessary documents for the transfer or termination of the telephone numbers and listings.
Dryject's rights extend to appointing themselves as the franchisee's attorney-in-fact to manage the transfer or termination of telephone services. This appointment is considered irrevocable until the franchisee fulfills all obligations under the franchise agreement and related agreements. The franchisee is obligated to transfer all telephone calls via call-forwarding to Dryject or another party designated by Dryject. The franchise agreement serves as conclusive evidence of Dryject's rights to the telephone numbers and listings, giving them the authority to direct the transfer.
These stipulations are critical for prospective franchisees to understand. Upon termination, Dryject has the power to take control of the phone numbers, which could impact the franchisee's ability to continue a similar business or maintain customer relationships. The franchisee also relinquishes any rights or control over these telephone numbers and listings after the transfer is completed, although they remain liable for any outstanding payments owed to the telephone companies for obligations incurred before the transfer. Dryject's control over these communication channels ensures business continuity and protects its brand identity within the local market.