For a Dryject franchisee that is not an individual, what agreement must be furnished to the franchisor at the time of execution of the agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
E) FRANCHISEE: ____________________________________________ PRINT NAME OF INDIVIDUAL (SIGNATURE AND DESIGNATION OF SOLE PROPRIETOR OR PARTNER AS THE CASE MAY BE) "BUSINESS ENTITY FRANCHISEE, MEMBERS, SHAREHOLDERS AND OFFICERS" In the event Franchisee is a business entity (corporation, limited liability company or other legal entity) then in accordance with this Agreement, the undersigned, who are each either executive officers or shareholders or members, or other equity participants owning twenty percent (20%) or more of the Franchisee, each agree to be jointly and severally personally liable for Franchisee's payment and performance of this Agreement and join in this Agreement on behalf of Franchisee.
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, such as a corporation or limited liability company, certain individuals associated with the entity must agree to be personally liable for the franchisee's obligations under the agreement. Specifically, executive officers, shareholders, members, or other equity participants owning 20% or more of the franchisee must sign the agreement.
These individuals agree to be jointly and severally personally liable for the franchisee's payment and performance under the Dryject agreement. This means that each individual is fully responsible for ensuring that the franchisee meets all financial and operational obligations. If the franchisee fails to meet these obligations, Dryject can seek recourse from any or all of these individuals.
This requirement is outlined in the "BUSINESS ENTITY FRANCHISEE, MEMBERS, SHAREHOLDERS AND OFFICERS" section of the franchise agreement. The document includes signature lines for these individuals, along with spaces to print their names, titles, the nature of their equity interest, and the date of signing. This ensures that Dryject has a clear record of who is personally guaranteeing the franchisee's performance.
This is a fairly standard practice in franchising, as it provides the franchisor with additional security and recourse in case the franchisee, as a business entity, defaults on its obligations. Prospective Dryject franchisees operating as business entities should ensure that all relevant individuals are aware of and willing to accept this personal liability before entering into the franchise agreement.