Who must Dryject franchise owners obtain signed covenants of confidentiality and noncompetition from, at the franchisor's request?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
At our request, you must obtain and deliver signed covenants of confidentiality and noncompetition from any and all people who have or may have an ownership interest in the Franchise Owner or in the Franchised Business or who receive or have access to training and other confidential information under the System. The covenants must be in a form satisfactory to us, and must provide that we are a third party beneficiary of, and have the independent right to enforce the covenants.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 38)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, at the franchisor's request, a franchisee must obtain signed covenants of confidentiality and noncompetition from specific individuals. These individuals include anyone who has or may have an ownership interest in the Franchise Owner or the Franchised Business. This requirement also extends to those who receive or have access to training and other confidential information under the Dryject System.
The covenants must be in a form that is satisfactory to Dryject. Furthermore, Dryject must be named as a third-party beneficiary of these covenants. This designation grants Dryject the independent right to enforce the covenants, ensuring the protection of their confidential information and trade secrets.
This requirement is typical in franchising, as franchisors need to protect their proprietary information and systems. By requiring these covenants, Dryject aims to prevent unauthorized use or disclosure of confidential information, which could harm the brand and its franchisees. Prospective franchisees should carefully review the form of the covenant to understand the scope of the restrictions and ensure that all relevant individuals within their business are willing to comply.