Is a Dryject franchisee still liable to telephone companies for obligations incurred before the transfer of telephone numbers and listings?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.5 Cessation of Obligations. After the Telephone Companies have duly transferred all Franchisee's Interest in such Telephone Numbers and Listings to Franchisor, as between Franchisee and Franchisor, Franchisee will have no further Interest in, or obligations under, such Telephone Numbers and Listings. Notwithstanding the foregoing, Franchisee will remain liable to each and all of the Telephone Companies for the sums Franchisee is obligated to pay such Telephone Companies for obligations Franchisee incurred before the date Franchisor duly accepted the transfer of such Interest, or for any other obligations not subject to the Franchise Agreement or this Telephone Listing Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee remains liable to telephone companies for obligations incurred before the transfer of telephone numbers and listings to the franchisor. Specifically, after the telephone companies transfer all of the franchisee's interest in telephone numbers and listings to Dryject, the franchisee will have no further interest in or obligations under such telephone numbers and listings, as between the franchisee and Dryject.
However, this cessation of obligations applies only between the franchisee and Dryject. The franchisee remains responsible for paying any sums owed to the telephone companies for obligations incurred before Dryject accepted the transfer of interest. This also includes any other obligations not subject to the Franchise Agreement or the Telephone Listing Agreement.
This provision protects the telephone companies and ensures they receive payment for services rendered before the transfer. It also clarifies that the transfer of interest to Dryject does not absolve the franchisee of pre-existing financial responsibilities to the telephone companies. A prospective franchisee should be aware that even after transferring telephone numbers and listings to Dryject, they will still be responsible for any outstanding bills or obligations to the telephone companies incurred prior to the transfer date.