Where in the Dryject Franchise Agreement are the requirements for owner’s participation and management staffing specified?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You are not required to personally participate in the direct operation of your Franchised Business. However, if you are not personally operating the Franchised Business, you must always have a fully trained manager operating the Franchised Business. While in most cases Franchise Owners will seek additional assistance for the labor-intensive portions of the business, we have built our reputation on Franchise Owner participation and believe it is necessary, but not mandatory, for continued success.
You and all of your managers must complete the initial franchise management training course before you open your business, and all other training courses required by us. All subsequent managers must be fully trained by us or by you according to our standards. However, we may charge a fee for this additional training.
If you are a corporation, partnership or other legal entity, you must be newly formed and each direct or indirect owner of 20% or more of your equity will be required to personally guarantee all of the obligations of the Franchise Owner under the Franchise Agreement. (See Franchise Agreement Addendum C for the form of Guaranty Agreement). If you are owned by a trust, or if your owners are owned by one or more trusts, the trusts and the beneficiaries of the trusts must sign the Guaranty. All direct and indirect owners will be required to sign and deliver confidentiality and noncompetition covenants as further described in our Operations Manual. (See Exhibit E for the form of Non-Disclosure, Non-Solicitation and Non-Competition Agreement.) We do not require a spouse or domestic partner of the owner to sign the Franchise Agreement nor provide a personal guaranty; however, we do require that your spouse or domestic partner sign a Spousal Non-Disclosure and Non-Competition Agreement, subject to state law; our current form is attached as Exhibit F to this Disclosure Document.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 25–26)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, Item 15 outlines the obligations related to the franchisee's participation in the actual operation of the franchise business. While Dryject does not mandate that franchisees personally participate in the direct operation of their franchised business, if they choose not to, they must ensure a fully trained manager is always operating the business. Dryject emphasizes that their reputation is built on franchisee participation and believes it is necessary, though not mandatory, for continued success.
Dryject requires that franchisees and their managers complete the initial franchise management training course before opening the business, along with any other required training courses. Subsequent managers must be fully trained either by Dryject or by the franchisee, adhering to Dryject's standards. Additional training provided by Dryject may incur a fee.
Furthermore, if the franchisee is a corporation, partnership, or other legal entity, it must be newly formed. Each direct or indirect owner with 20% or more equity must personally guarantee all obligations under the Franchise Agreement. These owners are also required to sign and deliver confidentiality and noncompetition covenants as described in the Operations Manual. While a spouse or domestic partner is not required to sign the Franchise Agreement or provide a personal guaranty, they must sign a Spousal Non-Disclosure and Non-Competition Agreement, subject to state law.