What is the Dryject franchisee's obligation regarding accepting business outside of their Designated Territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) You agree that You will not accept business nor perform services outside of Your Designated Territory without Our prior written approval. If You accept business from outside Your Designated Territory, which business is located in another franchise owner's designated territory, then We have the right to require You to forfeit all of the Gross Revenues You earned in the designated territory to the franchise owner who operates within the designated territory where that business is located. However, You may accept business resulting from referrals or unsolicited inquiries from customers outside Your Designated Territory if that business is not located in another franchise owner's designated territory.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, a franchisee is generally prohibited from accepting business or performing services outside of their Designated Territory without prior written approval from Dryject. However, there are exceptions to this rule. A Dryject franchisee may accept business resulting from referrals or unsolicited inquiries from customers outside their Designated Territory, provided that the business is not located within another franchisee's designated territory.
If a Dryject franchisee accepts business from outside their Designated Territory that is located within another franchisee's territory, Dryject has the right to require the franchisee to forfeit all gross revenues earned from that business to the franchisee who operates within that designated territory. This provision is designed to protect the territorial rights of each Dryject franchisee and prevent encroachment.
This policy has significant implications for prospective Dryject franchisees. It highlights the importance of understanding the boundaries of the Designated Territory and the potential financial consequences of operating outside of it. Franchisees need to be aware of the conditions under which they can accept business from outside their territory and the risk of forfeiting revenues if they violate the agreement. It is advisable for prospective franchisees to seek clarity from Dryject regarding the definition of 'Designated Territory' and the process for obtaining written approval to operate outside of it.