Is failing to comply with agreements with third parties related to the Dryject Franchised Business considered a default?

According to Dryject's 2025 Franchise Disclosure Document, failing to comply with agreements with third parties related to the Dryject Franchised Business is considered a default under the franchise agreement. Specifically, the FDD states that a franchisee will be in default for failing to comply with any of their agreements with third parties as related to the Franchised Business.

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, it constitutes a breach of the Dryject franchise agreement. This could trigger consequences such as a notice of default, potential termination of the franchise agreement, and other penalties.

This provision is fairly standard in franchising, as franchisors want to ensure that franchisees operate their businesses responsibly and maintain good relationships with suppliers and other parties. Failure to meet obligations can reflect poorly on the Dryject brand and disrupt the overall system. Prospective franchisees should carefully review all third-party agreements related to their Dryject business and ensure they can meet all obligations to avoid default.