What are some examples of curable defaults that could lead to termination of a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith.
Such defaults include, but are not limited to:
(i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our System Standards;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our System Standards, or Your failure to maintain Our System Standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
(vi) A failure by You to accurately or completely record all sales made in, upon or from the Franchised Business at the time of sale;
(vii) A breach by You of any other covenant, term, or provision of this Agreement;
(viii) A failure by You to open the Franchised Business within one hundred and eighty (180) days of the execution of this Agreement;
(ix) A failure by You to comply with any of Your agreements with any third parties as related to the Franchised Business; or,
(x) A failure by You to consistently pay the debts of the Franchised Business as they become due.
(c) In the event You are delivered two (2) or more notices of Material Breach from Us within a twelve (12) month period pertaining to any one (1) or more of the foregoing events of default whether or not cured after notice, during the initial Term or any renewal terms of this Agreement, We shall have the right to terminate this Agreement.
The effective date of any such termination notice under this Subsection shall be upon the expiration of Your receipt of three (3) days written notice to that effect, or such longer period as may be required by law.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 39–41)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, several curable defaults could lead to the termination of the franchise agreement. These include failing to remit payments when due, failing to establish, equip, maintain, or update the franchised business according to Dryject's System Standards, and failing to submit required financial reports or allow access to records within the specified timeframes. A franchisee's breach of any covenant, term, or provision of the agreement also constitutes a curable default. Furthermore, failing to open the franchised business within 180 days of signing the agreement or failing to comply with agreements with third parties related to the franchised business are also considered defaults. Another curable default is failing to consistently pay the debts of the franchised business as they become due.
Dryject requires franchisees to operate their businesses according to the standards outlined in the Operations Manual and to use approved products, methods, equipment, and suppliers. Failure to maintain these standards of quality service can also lead to termination, as can failing to obtain prior written approval or consent when required by the agreement. Accurately recording all sales at the time of the transaction is also a requirement, and failure to do so is a curable default.
Dryject will provide written notice of such defaults, and the franchisee typically has fifteen days to cure the breach by providing proof of the cure. However, if the breach cannot be reasonably cured within fifteen days but the franchisee has commenced and is continuing to make good faith efforts to cure it, Dryject may grant an additional reasonable period to remedy the default. If the franchisee fails to cure the default within the specified time, the agreement may be terminated immediately without further notice.
It is important to note that if Dryject delivers two or more notices of material breach within a 12-month period, regardless of whether the breaches were cured, Dryject has the right to terminate the agreement. The termination becomes effective three days after the franchisee receives written notice, or longer if required by law. This highlights the importance of consistent compliance with the franchise agreement to avoid potential termination.