During and after the Dryject franchise agreement term, am I allowed to contest the validity or ownership of Dryject's patents?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) We and/or Our affiliates own rights in, or to certain patents that are material to the Franchise and Our System. You shall not, at any time during the Term of this Agreement or after its termination or expiration contest the validity or ownership rights in any patents currently issued to or hereafter applied for by Us and/or Our affiliates. If litigation involving the Patents is instituted or threatened against You, You must notify Us promptly and cooperate fully with Us in defending or settling the litigation. Should We elect to protect the Patents or protect You against claims of infringement, We will have the right to control any litigation involving a patent licensed by Us to You.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, franchisees are prohibited from contesting the validity or ownership of Dryject's patents during the term of the agreement and after its termination or expiration. This restriction applies to patents currently issued to Dryject and those applied for by Dryject or its affiliates in the future.
This provision means that a Dryject franchisee cannot challenge Dryject's patent rights, which are crucial to the Dryject system. If litigation arises involving these patents, the franchisee must promptly notify Dryject and fully cooperate in defending or settling the matter. Dryject retains the right to control any litigation related to a patent licensed to the franchisee, ensuring the protection of its intellectual property.
This type of clause is relatively standard in franchise agreements, as franchisors need to protect their intellectual property rights. For a prospective Dryject franchisee, this means accepting that they cannot legally dispute Dryject's patent ownership. Any challenge could result in a breach of the franchise agreement, with potential legal and financial repercussions. Franchisees should conduct thorough due diligence prior to signing the agreement to ensure they are comfortable with these restrictions.