What does the Dryject Failure to Maintain Insurance fee cover?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Failure to Maintain | Cost of insurance and, | As required and as | Payable upon your |
| Insurance | if not obtained by you, our procurement expense. | incurred | failure to comply with the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Failure to Maintain Insurance fee covers the cost of insurance and, if Dryject obtains the insurance on behalf of the franchisee, Dryject's procurement expenses. This fee is payable if the franchisee fails to comply with the insurance requirements outlined in the Franchise Agreement.
In practical terms, this means that if a Dryject franchisee does not maintain the required insurance coverage, Dryject has the right to secure the necessary insurance and charge the franchisee for the cost of the insurance policy itself, as well as any expenses Dryject incurs in obtaining that insurance. This protects Dryject from potential liabilities arising from the franchisee's operations.
It is important for prospective Dryject franchisees to understand the insurance requirements detailed in the Franchise Agreement and to ensure they maintain continuous coverage. Failure to do so can result in not only the cost of the insurance and procurement expenses charged by Dryject, but also potential legal ramifications and a breach of the Franchise Agreement. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand and business from liabilities caused by underinsured franchisees.