What does the Dryject franchisee recognize about the Licensed Rights?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Subject to the terms and conditions of this Agreement, We grant to You the right to use Our Licensed Rights in the establishment and operation of the Franchised Business. You
acknowledge Our sole and exclusive right to use the DryJect Marks in connection with the products and services to which they are or may be applied by Us, and represent, warrant and agree that, neither during the Term of this Agreement nor after its expiration or other termination, shall You directly or indirectly contest, or aid in contesting, the validity or ownership of the Licensed Rights, or take any action whatsoever in derogation of the rights claimed by Us in this Agreement.
- (b) Nothing contained in this Agreement shall be construed to vest in You any right, title or interest in or to the Licensed Rights, the goodwill now or hereafter associated with such rights, other than the rights and license expressly granted to You in this Agreement. Any and all goodwill associated with or identified by the Licensed Rights shall inure directly and exclusively to Our benefit and is Our property.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, franchisees acknowledge Dryject's sole and exclusive right to use the DryJect Marks in connection with their products and services. Franchisees also agree that they will not contest the validity or ownership of the Licensed Rights, either during the term of the agreement or after its termination. Furthermore, they agree not to take any action that would undermine Dryject's rights as claimed in the agreement.
This means that franchisees recognize Dryject's ownership and control over its trademarks, service marks, trade names, logos, and other intellectual property. This recognition is crucial because it prevents franchisees from challenging Dryject's brand or creating confusion in the market. It also ensures that the goodwill associated with the DryJect brand remains with the franchisor.
Additionally, the agreement specifies that franchisees do not gain any right, title, or interest in the Licensed Rights beyond the specific license granted to them. All goodwill associated with the Licensed Rights exclusively benefits Dryject and is considered its property. This reinforces the franchisor's control over the brand and prevents franchisees from claiming ownership or equity in the DryJect Marks.
In practical terms, this clause protects Dryject's brand identity and market position. It prevents franchisees from misusing the DryJect Marks or taking actions that could harm the brand's reputation. Prospective franchisees should understand that they are licensing the right to use the DryJect Marks but will not own them, and they must adhere to Dryject's standards and guidelines for using these marks.