What is the exception regarding the protection of Dryject's goodwill and Trade Secrets?
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, in order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
- (a) Directly or indirectly, for himself/herself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States; or
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, there is an exception regarding the protection of Dryject's goodwill and trade secrets. Signers (individuals with access to Dryject's trade secrets through a franchisee) agree to protect the goodwill and unique qualities of the Dryject system and the confidentiality and value of Dryject's trade secrets.
However, this protection is limited by the laws of the state where the franchised business is located. If state laws prohibit such restrictions, the signer's obligations may be affected. Specifically, signers agree not to engage in or have a financial interest in businesses similar to Dryject within the United States during the time the franchisee is a franchisee and for two years after the termination or expiration of the franchise agreement.
This non-compete clause is designed to protect Dryject's market position and confidential information. Prospective franchisees should be aware of the specific state laws governing non-compete agreements in their area, as these laws could impact the enforceability of this provision. Franchisees should consult with legal counsel to understand the full scope of these restrictions and their potential impact on individuals who may have access to Dryject's trade secrets through their business.