Is failing to obtain Dryject's prior written approval when required considered a default?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith.
Such defaults include, but are not limited to:
(i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our System Standards;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our System Standards, or Your failure to maintain Our System Standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
(vi) A failure by You to accurately or completely record all sales made in, upon or from the Franchised Business at the time of sale;
(vii) A breach by You of any other covenant, term, or provision of this Agreement;
(viii) A failure by You to open the Franchised Business within one hundred and eighty (180) days of the execution of this Agreement;
(ix) A failure by You to comply with any of Your agreements with any third parties as related to the Franchised Business; or,
(x) A failure by You to consistently pay the debts of the Franchised Business as they become due.
(c) In the event You are delivered two (2) or more notices of Material Breach from Us within a twelve (12) month period pertaining to any one (1) or more of the foregoing events of default whether or not cured after notice, during the initial Term or any renewal terms of this Agreement, We shall have the right to terminate this Agreement.
The effective date of any such termination notice under this Subsection shall be upon the expiration of Your receipt of three (3) days written notice to that effect, or such longer period as may be required by law.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, failing to obtain prior written approval or consent when expressly required by the agreement is considered a default. This means that if the Franchise Agreement specifies situations where a franchisee needs Dryject's approval, not obtaining that approval can lead to a breach of contract.
Specifically, the FDD lists several examples of actions that require Dryject's prior written approval. These include, but are not limited to, developing or selling other products or services, selling Dryject products for resale, making material replacements or alterations to equipment, techniques, signs, or the System of the Franchised Business.
As a result of such a default, Dryject could issue notices of material breach. If a franchisee receives two or more notices of material breach within a 12-month period, Dryject has the right to terminate the Franchise Agreement. The termination would be effective after three days of written notice, or longer if required by law.
This provision underscores the importance of clear communication and adherence to the Franchise Agreement. A prospective Dryject franchisee should carefully review the agreement to understand all instances where prior written approval is required to avoid potential defaults and possible termination of the franchise agreement.