Can a Dryject franchisee own or invest in a business offering similar services within a 50-mile radius of another Dryject franchise?
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 Dryject's 2025 Franchise Disclosure Document, franchisees face restrictions on involvement with competitive businesses. Specifically, during the term of the agreement, a Dryject franchisee is prohibited from owning, managing, operating, or investing in any business that offers substantially similar products or services to Dryject. This restriction applies within a 50-mile radius of any other Dryject franchise or any Dryject business owned by the franchisor or its affiliates. This clause aims to prevent direct competition between franchisees and protect the brand's market share.
This restriction extends to various forms of involvement, including acting as a director, officer, manager, representative, or agent for a competitive business. It also covers having any direct or indirect financial interest in such a business. The FDD specifies that these restrictions apply prior to the termination or expiration of the Franchise Agreement.
Dryject emphasizes that franchisees possess general skills and opportunities and acknowledges that enforcing these covenants will not deprive them of their ability to earn a living. The agreement also states that if any of these covenants are found to be overly restrictive under applicable law, they can be reformed or modified by a court to ensure they are lawful and enforceable. This ensures that the restrictions are reasonable and compliant with legal standards, while still protecting Dryject's interests.
Prospective franchisees should carefully consider these restrictions and how they might impact their future business ventures. It is important to understand the scope of the competitive business restrictions and the potential implications for any related business activities a franchisee may wish to pursue during or after the franchise term.