What expenses will Dryject pay from the Gross Revenues account during a step-in period?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) During a step-in period, We will maintain in a separate account, all Gross Revenues of the Franchised Business. From that account We will pay all expenses of the Franchised Business, which will include the Royalty Service Fee, all Marketing Fund contributions or payments, and reasonable compensation and expenses for Our representatives. If these step-in rights are exercised, You agree to hold Us harmless and hold harmless Our representatives for all actions or omissions which occur during the course of the temporary operation. You agree to pay Our reasonable attorneys' fees and costs which might arise from the exercise of these step-in rights. Nothing in this Section 33 will prevent Us from exercising any other rights which We may have under this Agreement, including the right to terminate the Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, during a step-in period, Dryject will maintain a separate account for all Gross Revenues generated by the Franchised Business. From this account, Dryject will cover specific expenses related to the business's operation.
The expenses Dryject will pay from the Gross Revenues account include the Royalty Service Fee, contributions or payments to the Marketing Fund, and reasonable compensation and expenses for Dryject's representatives. This means that a portion of the revenue generated during the step-in period will be allocated to these specific obligations and costs.
Additionally, the franchisee is responsible for covering Dryject's reasonable attorneys' fees and costs that may arise from the exercise of these step-in rights. The FDD specifies that Dryject's ability to exercise other rights under the Franchise Agreement, including termination, is not limited by these step-in rights.