What are some examples of non-curable defaults that could lead to termination of a Dryject franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) Notwithstanding the foregoing provisions of this Section, You shall be in breach under this Agreement and all rights granted under this Agreement will automatically terminate without notice to You, if You do any of the following:
(i) Make an assignment for the benefit of creditors or an admission of Your inability to pay Your obligations as they become due; or,
(ii) File a voluntary petition in bankruptcy or any pleading seeking any reorganization, arrangement, composition, adjustment, liquidation, dissolution or similar release under any law, or admit or fail to contest the material allegations of any such pleading or action for the benefits of creditors filed against You, or are adjudicated bankrupt or insolvent, or a receiver is appointed for a substantial part of Your assets or the assets of the Franchised Business, or the claims of Your creditors or the creditors of the Franchised Business are abated or subject to moratorium under any laws.
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, there are specific instances of default that cannot be cured, leading to the immediate termination of the franchise agreement. These non-curable defaults include scenarios where the franchisee makes an assignment for the benefit of creditors or admits their inability to meet financial obligations.
Additionally, filing a voluntary petition in bankruptcy or any pleading seeking reorganization, arrangement, liquidation, or similar relief also constitutes a non-curable default. This also applies if the franchisee admits to or fails to contest allegations in actions for the benefit of creditors, is adjudicated bankrupt or insolvent, or has a receiver appointed for a substantial part of their assets. These situations indicate severe financial distress, which Dryject considers an irreparable breach of the franchise agreement.
These conditions allow Dryject to terminate the agreement without prior notice, highlighting the critical importance of maintaining financial stability and meeting debt obligations for franchisees. Prospective franchisees should carefully consider the financial risks associated with the business and ensure they have sufficient capital and a robust financial plan to avoid such defaults.