Where in the Dryject FDD can I find the conditions for franchisor approval of transfer?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
We must be provided all information about the proposed transferee as We may reasonably require;
(vi) We shall have the right to approve the material terms and conditions of the transfer, including, without limitation, the right to confirm that the price and terms of payment are not so burdensome as to affect adversely the transferee's operation of the Franchised Business;
(vii) The proposed transferee executes or, in appropriate circumstances, causes all necessary parties to execute Our then-current standard form of franchise agreement (provided that such execution will not serve to extend the then remaining Term of the franchise) and such other then-current ancillary agreements being required by Us of new franchisees on the date of transfer;
(viii) You, except to the extent prohibited by applicable law, have executed a general release of any and all claims against Us and Our subsidiaries and affiliates, and Our respective officers, directors, agents and employees;
(ix) You have paid to Us a non-refundable Transfer Fee equal to forty percent (40%) of the then-current Initial Franchise Fee being charged to new franchisees to cover Our reasonable costs in effecting the transfer;
(x) If You are providing financing to the proposed transferee for any part of the purchase price, You have agreed that all of the proposed transferee's obligations under promissory notes, agreements or security interests reserved in the Franchised Business are subordinate to the proposed transferee's obligation to pay fees and other amounts due to Us and otherwise to comply with the franchise agreement; and,
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the conditions for franchisor approval of a transfer can be found in Item 8. Specifically, Dryject requires that they be provided with all information about the proposed transferee that they may reasonably require.
Dryject also has the right to approve the material terms and conditions of the transfer, including confirming that the price and payment terms won't negatively impact the transferee's operation of the Dryject franchise. The proposed transferee must execute Dryject's then-current standard form of franchise agreement and any other ancillary agreements required of new franchisees at the time of transfer. Note that this execution will not extend the remaining term of the franchise.
Furthermore, the franchisee, except where prohibited by law, must execute a general release of any and all claims against Dryject and its subsidiaries, affiliates, officers, directors, agents, and employees. The franchisee must also pay Dryject a non-refundable Transfer Fee equal to forty percent (40%) of the then-current Initial Franchise Fee being charged to new franchisees. This fee covers Dryject's reasonable costs in facilitating the transfer.
If the franchisee is providing financing to the proposed transferee, the franchisee must agree that all of the proposed transferee's obligations under promissory notes, agreements, or security interests are subordinate to the proposed transferee's obligation to pay fees and other amounts due to Dryject and otherwise comply with the franchise agreement.