What does the Dryject franchisee agree to do to protect the franchisor from claims arising from the franchisee's operation of the business?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor has granted Franchisee a limited right to operate a territory | | using DRYJECT SYSTEM and Franchisor's Trade Secrets for the period defined in the | | Franchise Agreement made and entered into on | | , | | between Franchisor and Franchisee ("Franchise Agreement"); |
WHEREAS, Franchisor and Franchisee have agreed in the Franchise Agreement on the importance to Franchisor and to Franchisee and other licensed users of DRYJECT SYSTEM of restricting use, access and dissemination of Franchisor's Trade Secrets;
WHEREAS, it will be necessary for certain employees and contractors of Franchisee to have access to and to use some or all of Franchisor's Trade Secrets in the development and maintenance of Franchisee's Business using DRYJECT SYSTEM;
WHEREAS, Franchisee has agreed to obtain from certain key employees written agreements protecting Franchisor's Trade Secrets and DRYJECT SYSTEM against unfair competition;
WHEREAS, Trainee wishes to remain, or wishes to become, an employee of Franchisee; and
WHEREAS, Trainee wishes and needs to receive and use Franchisor's Trade Secrets in the course of Trainee's employment in order to effectively perform Trainee's services for Franchisee.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
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- Franchisor and/or Franchisee shall disclose to Trainee some or all of Franchisor's Trade Secrets relating to DRYJECT SYSTEM.
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- Trainee shall receive Franchisor's Trade Secrets in confidence, maintain them in confidence, and use them only in the course of Trainee's employment by Franchisee and then only in connection with the development and/or maintenance by Franchisee of Business using DRYJECT SYSTEM for so long as Franchisee is licensed by Franchisor to use DRYJECT SYSTEM.
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Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, the franchisee agrees to take several measures to protect Dryject's trade secrets and brand reputation, which indirectly shields Dryject from potential claims. These measures primarily revolve around managing employees and contractors who have access to Dryject's confidential information. Franchisees must obtain written agreements from key employees, ensuring they protect Dryject's trade secrets and the Dryject system against unfair competition. This includes preventing employees from disclosing trade secrets or engaging in activities that could harm the goodwill associated with the Dryject brand. The franchisee also commits to ensuring that their employees (referred to as 'Trainees' in the FDD) adhere to the terms of their agreements.
Specifically, the franchisee must ensure that employees who have access to Dryject's trade secrets do not disclose this information to unauthorized parties. Employees must also refrain from any actions that could be detrimental to the Dryject system's goodwill. Furthermore, the franchisee is responsible for making sure that these employees act in accordance with the agreements they've signed. This includes preventing employees from engaging in competitive activities during their employment and for a period of two years after their employment ends, within the bounds of what is legally permissible in the state where the franchised business operates or where the employee lives/works.
Dryject also emphasizes the importance of restricting the use, access, and dissemination of its trade secrets, highlighting that both the franchisor and franchisee benefit from these restrictions. By implementing these measures, Dryject aims to maintain the confidentiality and value of its trade secrets, protect its brand reputation, and minimize the risk of potential claims arising from the misuse of confidential information or unfair competition. These stipulations are designed to protect Dryject's market position and proprietary information, which ultimately benefits both the franchisor and its franchisees by maintaining brand integrity and competitive advantage.