Is a Dryject franchisee responsible for finding out whether the name "DryJect®" is already being used in the Designated Territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no actual knowledge of either superior prior rights or infringing uses that could materially affect a Franchise Owner's use of the Marks in any state. We cannot prevent anyone who began using the name "DryJect®" before our use of it from continuing their use of that name in the area of prior use. The name "DryJect®" may be in use by other businesses in the United States who are not our franchisees or in any way affiliated with us. You are responsible for finding out whether the name "DryJect®" is already being used in the Designated Territory.
The Franchise Agreement does not contain any provisions under which we are required to defend or indemnify you against any claims of infringement or unfair competition arising out of your use of the Marks. If litigation involving the Marks is instituted or threatened against you, you must notify us promptly and cooperate fully with us in defending or settling the litigation. Should we elect to protect the Marks or protect you against claims of infringement, we will have the right to control any administrative proceeding or litigation involving a trademark licensed by us to you.
Source: Item 13 — TRADEMARKS (FDD pages 35–36)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a prospective franchisee is responsible for determining if the name "DryJect®" is already in use within their designated territory. Dryject acknowledges that other businesses, not affiliated with them, may already be using the name "DryJect®" in the United States. However, Dryject cannot prevent anyone who used the name before them from continuing to use it in the area of prior use.
This means that before investing in a Dryject franchise, a potential franchisee must conduct thorough market research to ensure the name is not already in use by another business in their target area. This could involve checking business directories, online searches, and local records. If another business is already using the name, it could create confusion for customers and potentially lead to legal disputes.
It is important to note that the Franchise Agreement does not require Dryject to defend or indemnify franchisees against claims of infringement or unfair competition arising from the use of the DryJect® marks. If a franchisee faces litigation related to the marks, they must promptly notify Dryject and cooperate fully in defending or settling the matter. However, Dryject retains the right to control any administrative proceeding or litigation involving the trademark.
Therefore, it is crucial for prospective Dryject franchisees to conduct due diligence regarding trademark usage in their area to mitigate potential risks and ensure the successful operation of their franchise.