What is the exception to the non-compete agreement for Dryject trainees based on state law?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the Trainee lives or works, in further consideration for the disclosure to Trainee of Franchisor's Trade Secrets and to protect the uniqueness of DRYJECT SYSTEM, Trainee agrees that for two (2) years following the termination of Trainee's employment with Franchisee, Trainee will not without the prior written consent of Franchisor, divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Franchised Business(s) to any competitor.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the non-compete agreement for trainees has an exception based on state law. Specifically, the document states that the restrictions within the non-compete agreement do not apply to the extent that they are prohibited by the laws of the state where the franchised business is located or where the trainee lives or works. This means that if a state's laws have provisions that conflict with or prohibit certain aspects of the non-compete agreement, those state laws will take precedence.
For a prospective Dryject franchisee, this is an important consideration. It means the enforceability and scope of the non-compete agreement with a trainee can vary significantly depending on the specific state. The franchisee needs to be aware of the labor and franchise laws in their state, as well as the state where the trainee resides or works, to understand the actual limitations of the non-compete agreement. This also highlights the importance of seeking legal counsel to ensure compliance with local regulations and to tailor the non-compete agreement accordingly.
Dryject also emphasizes that franchisees are responsible for obtaining their own professional advice regarding the adequacy of the terms and provisions of any non-compete agreement they require their employees, agents, and independent contractors to sign. This underscores the need for franchisees to proactively seek legal guidance to ensure that their non-compete agreements are enforceable and compliant with applicable state laws. The franchisee bears the responsibility of understanding and adhering to these legal requirements, rather than relying solely on Dryject to provide comprehensive legal advice.