Does Dryject's failure to exercise its right of first refusal waive any other provisions of the franchise agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Failure by Us to exercise the option afforded by this Section shall not constitute a waiver of any other provisions of this Agreement, including all of the requirements of Section 28 hereof, with respect to the proposed transfer.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, specifically Section 31, if Dryject does not exercise its right of first refusal to purchase a franchisee's business when the franchisee receives a legitimate offer from a third party, this failure does not waive any other provisions of the franchise agreement. This includes all requirements outlined in Section 28 of the agreement, which likely pertains to transfer conditions.
This means that even if Dryject declines to buy the business at the offered terms, the franchisee must still comply with all other terms of the franchise agreement when transferring the business to the third party. These terms could include obtaining Dryject's consent for the transfer, meeting certain financial requirements, or adhering to specific operational standards.
For a prospective franchisee, this clause reinforces that selling the franchise is not simply a matter of finding a buyer and transferring ownership after Dryject declines the right of first refusal. The franchisee must still navigate the full set of obligations detailed in the franchise agreement, ensuring compliance to avoid potential breaches or disputes with Dryject. This protects Dryject's interests and standards even when a transfer occurs.