What is the Dryject franchisee's obligation regarding disclosing innovations to the franchisor?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
be deemed Our sole and exclusive property and works made-for-hire for Us. We have the right to incorporate Innovations into the System and may use them and may authorize You and others to use them in the operation of DryJect businesses. Innovations will then also constitute Confidential Information. We will disclose to You Innovations that are made a part of the System in this manner. To the extent any Innovation does not qualify as a work made-for-hire for Us, by this paragraph You assign ownership of that Innovation, and all intellectual property and other rights to the Innovation, to Us and agree to sign and deliver such instruments and documents, provide such assistance and perform such other acts as We periodically designate in order for Us or Our designee to obtain exclusive rights in such Innovations. We will have no obligation to make any lump sum or other payments to You or any other person with respect to any such Innovations. You will not use, nor will You allow any other person to use, any such Innovations, whether in connection with the Franchised Business or otherwise, without obtaining Our prior written approval. You also agree that if You shall develop any new trademarks, service marks, trade names and trade symbols, trade dress, signs, slogans, associated logos, designs, e-marks, copyrights, emblems, patents, formulas, concepts, processes or improvements in the operation or promotion of the Franchised Business, We will immediately become sole owner and licensor.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees are obligated to disclose any innovations they develop related to the Dryject system to the franchisor. These innovations are considered the sole and exclusive property of the franchisor and are treated as works made-for-hire. This means Dryject has the right to incorporate these innovations into their system and authorize their use by other franchisees. These innovations also become classified as Confidential Information.
If an innovation does not qualify as a work made-for-hire, the franchisee must assign ownership and all associated intellectual property rights to Dryject. The franchisee is also required to sign documents and provide assistance to ensure Dryject obtains exclusive rights to these innovations. Dryject is not obligated to provide any compensation or payments to the franchisee for these innovations.
Furthermore, the franchisee is prohibited from using or allowing others to use these innovations without Dryject's prior written approval, whether in connection with the franchised business or otherwise. Similarly, any new trademarks, service marks, or other intellectual property developed by the franchisee in the operation or promotion of the franchised business immediately become the sole property of Dryject.