After the Dryject franchise agreement terminates, can I use Dryject's licensed rights for another business?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) You acknowledge and agree that We are the owner of the Licensed Rights which include all Marks and that Your right to use the Licensed Rights is derived solely from this Agreement and is limited to the conduct of the business by You pursuant to and in compliance with this Agreement and all applicable standards, specifications, and operating procedures prescribed by Us from time to time during the Term of this Agreement. Any unauthorized use of the Marks by You constitutes a material breach of this Agreement and an infringement of Our rights in and to the Marks. You acknowledge and agree that all usage of the Marks by You and any goodwill established by Your use of the Marks shall inure to Our exclusive benefit and that this Agreement does not confer any goodwill or other interests in or to the Marks upon You. You shall not, at any time during the Term of this Agreement, or after its termination or expiration, contest the validity or ownership of any of the Marks or assist another person in contesting the validity or ownership of any of the Marks. All provisions of this Agreement applicable to the Marks apply to any additional trademarks, service marks, trade names, trade dress, trade symbols, signs, slogans, associated logos, designs, emblems, e-marks, copyrights, and commercial symbols authorized for use by and licensed to You by Us after the date of this Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees are prohibited from using Dryject's licensed rights after the termination or expiration of the franchise agreement. The agreement states that the franchisee's right to use the licensed rights, including all marks, is derived solely from the franchise agreement. This right is limited to conducting business according to the agreement's terms and standards during the agreement's term. Any unauthorized use of the marks is considered a material breach of the agreement and an infringement of Dryject's rights.
The Dryject franchise agreement explicitly states that all usage of the marks by the franchisee and any goodwill established through that use will accrue exclusively to the benefit of Dryject. The agreement clarifies that it does not confer any goodwill or other interests in the marks to the franchisee. This means that upon termination or expiration of the agreement, the franchisee cannot claim any ownership or right to continue using the Dryject marks or associated goodwill in any subsequent business venture.
Furthermore, the agreement emphasizes that franchisees cannot contest the validity or ownership of any of the marks at any time, including after the termination or expiration of the agreement. This restriction reinforces Dryject's control over its intellectual property and prevents franchisees from challenging Dryject's rights to the marks. The agreement also specifies that all provisions applicable to the marks extend to any additional trademarks, service marks, trade names, or other commercial symbols authorized for use by the franchisee after the agreement's date, further solidifying Dryject's ownership and control over its brand identity.