What financial statements must a Dryject franchisee provide to the franchisor when the franchisor is considering exercising its right of first refusal?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
If You receive from a third party, and desire to accept, a bona fide written offer to purchase Your business, franchise and interests in the Franchised Business (or seek to effect a sale of the Franchised Business), We shall have a right of first refusal, exercisable by written notice to You furnished within thirty (30) days after written notice and receipt of a copy of such offer and the other information set forth in this Section, to purchase such business, franchise and interests on the same financial terms and conditions as offered to or by such third party; provided further that We may substitute cash for any other form of payment proposed in such offer. In order that We may have information sufficient to enable Us to determine whether to exercise Our right of first refusal, You shall deliver to Us, to the extent requested by Us, certified financial statements as of the end of Your most recent fiscal year, any financial statements prepared by or for You since the end of such fiscal year and such other information about the business and operations of Franchisee as You have provided or will make available to such third party. If We do not exercise Our right under this Section 31, You may, within ninety (90) days from the expiration of the option period, sell, assign and transfer Your business, Franchise and interests hereunder but only upon the same terms and conditions proposed to Us and provided We have consented to such transfer as required by Section 28 hereof.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if a franchisee receives a legitimate offer to purchase their Dryject business and intends to accept it, Dryject has a right of first refusal. This means Dryject has the option to purchase the franchise on the same terms offered by the third party. To enable Dryject to evaluate whether to exercise this right, the franchisee must provide certain financial information.
Specifically, Dryject may request certified financial statements from the franchisee for the most recent fiscal year. Additionally, Dryject can request any financial statements prepared since the end of that fiscal year. The franchisee must also provide any other information about the business and its operations that they have already provided, or will provide, to the third party making the offer.
This requirement ensures Dryject has sufficient insight into the financial health and operational details of the franchise to make an informed decision about whether to exercise its right of first refusal. It is important for prospective franchisees to understand that they may need to disclose detailed financial information to Dryject should they decide to sell their business.