Does the execution of a new franchise agreement by the transferee extend the Dryject franchise term?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vii) The proposed transferee executes or, in appropriate circumstances, causes all necessary parties to execute Our then-current standard form of franchise agreement (provided that such execution will not serve to extend the then remaining Term of the franchise) and such other then-current ancillary agreements being required by Us of new franchisees on the date of transfer;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, when a franchise is transferred to a new franchisee, the execution of a new franchise agreement does not extend the original term of the franchise. The new franchisee must execute Dryject's current standard form of franchise agreement. However, this execution will not extend the remaining term of the original franchise agreement.
This means that the new franchisee will only operate the Dryject franchise for the time remaining on the original agreement. If the original agreement had five years left, the new franchisee's term would only be five years, regardless of the new agreement they sign.
This policy ensures that Dryject can maintain control over the franchise terms and conditions, and allows them to update agreements with new franchisees without being bound by the terms of older agreements. For a potential franchisee, this highlights the importance of understanding the remaining term of a franchise agreement when considering a transfer.