Does the Dryject franchise agreement allow a franchisee to transfer their rights before the Franchised Business has commenced operations?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) You acknowledge and agree that the restrictions on transfer imposed herein are reasonable and are necessary to protect Our Franchise System; Our trade secrets and operating procedures; Our general high reputation and image; the Licensed Rights; as well as You and Our other DryJect franchisees. Any assignment or transfer permitted by this Agreement shall not be effective until We receive a completely executed copy of all transfer documents and consent to such transfer in writing. Under no circumstances will You have a right to transfer under this Agreement before the Franchised Business has commenced operations.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees are not permitted to transfer their rights before the Franchised Business has commenced operations. The FDD states explicitly that a franchisee does not have the right to transfer the franchise under the agreement until after the business has started operating. This restriction is in place to protect Dryject's franchise system, trade secrets, operating procedures, reputation, image, and the interests of other Dryject franchisees.
Dryject's consent to any transfer is a subjective determination, considering factors such as the transferee assuming all obligations, payment of debts to Dryject and its affiliates, and the franchisee not being in default. The proposed transferee must also meet Dryject's requirements for new franchisees, including good reputation, experience, financial stability, and the willingness to devote full time and effort to the business. Dryject requires complete information about the proposed transferee to make an informed decision.
This restriction is fairly common in franchising, as franchisors want to ensure that the business is up and running before a transfer occurs. This helps maintain the integrity of the brand and ensures that the new franchisee is set up for success. Prospective Dryject franchisees should be aware of this limitation on transfer rights and factor it into their business plans.