Can a Dryject franchisee grant franchises or licenses to others to operate a Competitive Business?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ii) own, manage, maintain, operate, engage in, advise, consult with, invest in, be employed by or perform services as a director, officer, manager, representative, agent, or otherwise, or have any direct or indirect interest in any business that (a) specializes, in whole or in part, in offering to the public substantially similar products and/or services to those products and/or services offered by Your Franchised Business prior to the termination or expiration of this Agreement within a fifty (50) mile radius of any other franchisee's franchised business or any Franchisor-owned or affiliate-owned DryJect business (a "Competitive Business") or (b) grants franchises or licenses to others to operate a Competitive Business.
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 restricted from granting franchises or licenses to others to operate a business that competes with Dryject. Specifically, during the term of the agreement or after, a franchisee cannot have any direct or indirect interest in any business that grants franchises or licenses to others to operate a Competitive Business. A Competitive Business is defined as one that specializes in offering substantially similar products and/or services to those offered by the Dryject franchise within a 50-mile radius of any other franchisee's or franchisor-owned Dryject business.
This restriction is in place to protect Dryject's market position and prevent the dissemination of its trade secrets and operating procedures. The FDD emphasizes that these restrictions are reasonable and necessary to protect the franchise system, trade secrets, reputation, and the interests of other Dryject franchisees.
For a prospective Dryject franchisee, this means they are prohibited from sub-franchising or licensing the Dryject business to others. They also cannot be involved in any business that does so, if that business offers similar services to Dryject and operates within the specified radius. This is a standard clause in franchise agreements to maintain brand consistency and prevent competition within the franchise network.