factual

Is a Dryject franchisee allowed to solicit or divert business to a competitor?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) Divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Business(s) to any competitor.

Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the Trainee lives or works, in further consideration for the disclosure to Trainee of Franchisor's Trade Secrets and to protect the uniqueness of DRYJECT SYSTEM, Trainee agrees that for two (2) years following the termination of Trainee's employment with Franchisee, Trainee will not without the prior written consent of Franchisor, divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Franchised Business(s) to any competitor.

Franchisee undertakes to use Franchisee's best efforts to ensure that Trainee acts as required by this Agreement.

Trainee agrees that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law.

Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions thereof, Franchisor shall be entitled to enforce the provisions of this Agreement against Franchisee and Trainee, and may seek, in addition to any other remedies which are made available to it at law or in equity, including the right to terminate the Franchise Agreement, a temporary and /or permanent injunction and a decree for the specific performance of the terms of this Agreement, without being required to furnish a bond or other security.

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to the 2025 Dryject Franchise Disclosure Document, a franchisee is not allowed to divert business to a competitor. The agreement states that a franchisee cannot divert or attempt to divert, directly or indirectly, any business, business opportunity, or customer of the franchisee's business to any competitor. This restriction is in place to protect Dryject's business interests and maintain the integrity of the franchise system.

This restriction also extends to the franchisee's employees. For a period of two years following the termination of a trainee's employment with the franchisee, the trainee is prohibited from diverting or attempting to divert any business, business opportunity, or customer of the franchisee's franchised business to any competitor, unless they obtain prior written consent from Dryject. The franchisee is responsible for ensuring that their trainees comply with this agreement.

Dryject emphasizes the importance of protecting its trade secrets and the uniqueness of its system. The FDD states that any breach of this agreement would cause irreparable injury to Dryject, entitling them to seek legal remedies, including injunctive relief and specific performance, without the need to furnish a bond or other security. This highlights the seriousness with which Dryject views any attempt to divert business or solicit customers for competitors.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.