factual

What is the Dryject franchisee's obligation regarding the debts of the Franchised Business?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

actions, and causes of action whatsoever, whether in tort or in contract, at law or in equity, known or unknown, contingent or fixed, suspected or unsuspected, arising out of, asserted in, assertable in, or in any way related to this Telephone Listing Agreement.

  • 3.2 Indemnification. Franchisee is solely responsible for all costs and expenses related to Franchisee's performance, Franchisee's nonperformance, and Franchisor's enforcement of this Agreement, which costs and expenses Franchisee will pay Franchisor in full, without defense or setoff, on demand. Franchisee agrees that it will indemnify, defend, and hold harmless Franchisor and its affiliates, and the directors, officers, shareholders, partners, members, employees, agents, and attorneys of Franchisor and its affiliates, and the successors and assigns of any and all of them, from and against, and will reimburse Franchisor and any and all of them for, any and all loss, losses, damage, damages, claims, debts, claims, demands, or obligations that are related to or are based on this Telephone Listing Agreement.
  • 3.3 No Duty.

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs and expenses related to their performance, nonperformance, and Dryject's enforcement of the agreement. The franchisee must pay these costs in full, without any defense or setoff, upon demand from Dryject.

Additionally, the franchisee agrees to indemnify, defend, and hold harmless Dryject and its affiliates, as well as their directors, officers, shareholders, partners, members, employees, agents, and attorneys. This means the franchisee will protect Dryject from any losses, damages, claims, debts, demands, or obligations related to the Telephone Listing Agreement. The franchisee is also responsible for reimbursing Dryject for any such losses or expenses.

Furthermore, the document states that all of the franchisee's obligations under the Telephone Listing Agreement are joint and several. This implies that each franchisee is individually liable for the full amount of the debt, as well as collectively liable. This agreement regarding telephone listings survives the termination of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.