Does the Dryject franchise agreement require the franchisee to assign ownership of innovations to Dryject even if those innovations do not qualify as works made-for-hire?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
be deemed Our sole and exclusive property and works made-for-hire for Us. We have the right to incorporate Innovations into the System and may use them and may authorize You and others to use them in the operation of DryJect businesses. Innovations will then also constitute Confidential Information. We will disclose to You Innovations that are made a part of the System in this manner. To the extent any Innovation does not qualify as a work made-for-hire for Us, by this paragraph You assign ownership of that Innovation, and all intellectual property and other rights to the Innovation, to Us and agree to sign and deliver such instruments and documents, provide such assistance and perform such other acts as We periodically designate in order for Us or Our designee to obtain exclusive rights in such Innovations. We will have no obligation to make any lump sum or other payments to You or any other person with respect to any such Innovations. You will not use, nor will You allow any other person to use, any such Innovations, whether in connection with the Franchised Business or otherwise, without obtaining Our prior written approval. You also agree that if You shall develop any new trademarks, service marks, trade names and trade symbols, trade dress, signs, slogans, associated logos, designs, e-marks, copyrights, emblems, patents, formulas, concepts, processes or improvements in the operation or promotion of the Franchised Business, We will immediately become sole owner and licensor.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, franchisees are required to assign ownership of innovations to Dryject, even if those innovations do not qualify as works made-for-hire. Dryject has the right to incorporate these innovations into their system and authorize franchisees and others to use them. These innovations will also be considered confidential information, and Dryject will disclose any innovations that become part of the system to the franchisee.
Specifically, if an innovation doesn't qualify as a work made-for-hire, the franchisee must assign ownership and all related intellectual property rights to Dryject. The franchisee also agrees to provide any necessary documents or assistance to ensure Dryject obtains exclusive rights to these innovations.
Dryject is not obligated to provide any payment or compensation to the franchisee for these innovations. Furthermore, the franchisee is prohibited from using these innovations, whether in connection with the franchised business or otherwise, without Dryject's prior written approval. The agreement also stipulates that any new trademarks, service marks, trade names, or other intellectual property developed by the franchisee will immediately become the sole property of Dryject.