factual

What federal law might supersede the Dryject franchise agreement's termination upon bankruptcy provision?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

The franchise agreement provides for termination upon bankruptcy. This provision may not be enforceable under federal bankruptcy law. (11 U.S.C.A. Sec. 101 et seq.).

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, the franchise agreement includes a provision for termination upon bankruptcy. However, this provision may not be enforceable due to federal bankruptcy law. Specifically, the document cites 11 U.S.C.A. Sec. 101 et seq. as the federal law that could supersede the termination clause in the franchise agreement.

For a prospective franchisee, this means that the standard termination clause related to bankruptcy in the Dryject franchise agreement might not be automatically enforced. Federal bankruptcy laws are designed to provide certain protections to debtors, which could override the franchisor's contractual right to terminate the agreement solely based on the franchisee's bankruptcy filing.

It is important for potential Dryject franchisees to consult with legal counsel to fully understand their rights and obligations under both the franchise agreement and federal bankruptcy law. This is especially crucial if they anticipate any financial instability or have concerns about the enforceability of specific clauses in the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.