Does the Dryject Franchise Disclosure Document include a non-disclosure, non-solicitation, and non-competition agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee lives or works, You shall cause any person who is actively involved as a Key Employee, as defined in Section 12 of this Agreement, in the Franchised Business, at the time such person enters Your employment, to enter into a non-disclosure, non-solicitation and noncompetition agreement, in a form approved by Us or as We otherwise provide. You acknowledge and agree that any form of non-disclosure, non-solicitation and non-competition agreement is a form of agreement only and that it may or may not be enforceable in a particular jurisdiction. You agree that You are solely responsible for obtaining Your own professional advice with respect to the adequacy of the terms and provisions of any non-compete agreement You require Your employees, agents and independent contractors to sign.
You shall use Your best efforts to prevent any such persons from; (i) using, in connection with the operation of any competing business wherever located, any of the Licensed Rights; or (ii) from operating any competing business that looks like, copies or imitates any DryJect franchised business or operates in a manner tending to have such effect. If You have reason to believe that any such person has violated the provisions of the non-disclosure, non-solicitation and noncompetition agreement, You shall immediately notify Us and shall cooperate with Us to protect Us against infringement or other unlawful use of the Licensed Rights, including, but not limited to, the prosecution of any lawsuits if, in the judgment of Our counsel, such action is necessary and advisable.
The provisions of this Section shall survive any termination or expiration of this Agreement or any renewals thereof.
28. ASSIGNMENT; CONDITIONS AND LIMITATIONS
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Yes, according to the 2025 Dryject Franchise Disclosure Document, Dryject requires franchisees to have their key employees sign non-disclosure, non-solicitation, and non-competition agreements. Specifically, Section 27 of Item 8 addresses these agreements. These agreements aim to protect Dryject's licensed rights and prevent unfair competition. However, the FDD notes that the enforceability of these agreements can vary by jurisdiction, and franchisees are responsible for seeking their own legal advice regarding the adequacy of the terms.
Dryject also includes Exhibit E, which is a sample Non-Disclosure, Non-Solicitation, and Non-Competition Agreement. This agreement is between Dryject Management, LLC and the trainee. The agreement outlines the trainee's obligations to maintain the confidentiality of Dryject's trade secrets and to refrain from soliciting customers or competing with Dryject during their employment. The agreement is governed by the laws of the Commonwealth of Pennsylvania.
Furthermore, Dryject uses a Spousal Non-Disclosure and Non-Competition Agreement, included as Exhibit F. This agreement acknowledges that the spouse may have access to Dryject's trade secrets as the franchisee develops their business. The spouse agrees to maintain the confidentiality of these trade secrets and not engage in any activities that could harm the goodwill associated with the Dryject system. This agreement is also designed to protect Dryject's confidential information and competitive advantage.
These measures are typical in franchising to protect the brand's proprietary information, customer relationships, and market position. Prospective Dryject franchisees should carefully review these agreements with legal counsel to understand their obligations and the potential implications for their employees and spouses.