For a Dryject franchisee that is a business entity, what information must be provided for each officer, shareholder, or member owning 20% or more of the franchisee?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ill actively and substantially participate personally in the beneficial ownership and management of the DryJect Franchised Business.
- (b) In the event You are a business entity (including but not limited to a corporation, a limited liability corporation, a partnership, a limited liability partnership, a trust), in addition to being newly formed, You must complete and sign the Principal Owner's Statement attached to this Agreement as Addendum D and each individual with an ownership interest in You must also sign Addendum D. Further, You represent, warrant and covenant that:
- (i) You are newly formed and duly organized and validly exist under the laws of the state in which You were formed;
- (ii) You are duly qualified and are authorized to do business in each jurisdiction in which Your business activities or the nature of the properties owned by You require such qualification;
- (iii) The execution of and transactions contemplated by this Agreement are within Your powers;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if the franchisee is a business entity, specific requirements must be met regarding individuals with significant ownership. Each individual with a twenty percent (20%) or greater ownership interest must sign a Guaranty Agreement (Addendum C) and provide the original signed agreement to Dryject.
Furthermore, each shareholder or member must execute and deliver a Confidentiality and Non-Competition Agreement as detailed in the Operations Manual, and a copy must be provided to Dryject. This ensures that all individuals with substantial control over the franchisee are legally bound to protect Dryject's interests and trade secrets.
In addition to these agreements, the business entity itself must accurately list all ownership interests in Addendum D. This comprehensive approach ensures that Dryject has a clear understanding of the ownership structure and that all key individuals are committed to upholding the franchise agreement and protecting Dryject's confidential information and competitive position.