Is failing to comply with agreements with third parties related to the Dryject Franchised Business a cause for termination?

According to Dryject's 2025 Franchise Disclosure Document, failing to comply with agreements with third parties related to the Dryject Franchised Business can be grounds for default under the Franchise Agreement. Specifically, the FDD states that a franchisee's failure to comply with any agreements with third parties as related to the Franchised Business is included in the list of defaults.

This means that if a Dryject franchisee enters into an agreement with a third party (such as a supplier, lender, or service provider) in connection with their Dryject business, and then fails to uphold their obligations under that agreement, Dryject could consider this a breach of the Franchise Agreement.

If Dryject determines that the franchisee has failed to comply with the third-party agreement, it could lead to the termination of the Franchise Agreement. However, the franchisee typically has an opportunity to cure the default within fifteen (15) days after receiving written notice of the breach. If the breach cannot be reasonably cured within that time, the franchisee may be given additional time to resolve the issue, provided they are making good faith efforts to do so. If the default is not cured within the specified time, the Franchise Agreement can be terminated immediately without further notice.

This provision highlights the importance of franchisees carefully managing their relationships and agreements with third parties. Franchisees should ensure they fully understand their obligations under any such agreements and take steps to comply with them to avoid potential default and termination of their Dryject franchise.