What is the Dryject franchisee's obligation regarding non-disclosure, non-solicitation, and non-competition agreements for Key Employees?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
A "Key Employee" as used in this Agreement is anyone who is an owner, partner, member and/or employee who acts in a management, supervisory or sales capacity for or on behalf of the Franchised Business. You shall identify all of Your Key Employees in Addendum B of this Agreement. Each individual listed in Addendum B as a Key Employee no matter when so listed, at Our option, shall attend Our Initial Training Program, and shall thereafter be jointly and severally responsible for operating the Franchised Business in accordance with the standards of Our System and this Agreement. You represent and warrant that each of the individuals designated in Addendum B will at all times abide by the System Standards of Our System, this Agreement, and the Licensed Rights; that You will at all times assume personal responsibility for their continued compliance with those System Standards; and that You will promptly notify Us if any of them shall at any time during the Term of this Agreement divest themselves of ownership, partnership, membership, or employment, as the case may be, with You. You shall amend Addendum B and submit the amended Addendum to Us whenever there is any change in Your list of Key Employees. We reserve the right to require certain individuals to be included in Your list of Key Employees.
We possess certain proprietary Confidential Information consisting of the Marks, the Intellectual Property, Our System Standards, and other methods, techniques, formats, specifications, procedures, information, systems, methods of business management, sales and promotion techniques and knowledge of and experience in the operation and franchising of DryJect franchised businesses (the "Confidential Information"). Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee lives or works, every Key Employee must sign a non-disclosure, non-solicitation and non-competition agreement in a form approved by Us or as We otherwise provide. You must provide a copy of each Key Employee's signed non-disclosure, non-solicitation and non-competition agreement to Us prior to such Key Employee beginning Our Initial Training Program and prior to Your disclosing Our Confidential Information to such Key Employee.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, franchisees are generally required to have their Key Employees sign non-disclosure, non-solicitation, and non-competition agreements. A "Key Employee" is defined as anyone who acts in a management, supervisory, or sales capacity for the Dryject franchised business. Franchisees must identify these Key Employees in Addendum B of the Franchise Agreement.
The franchisee's obligation to obtain these agreements is subject to the laws of the state where the franchised business is located or where the employee lives or works, meaning that these agreements may not be enforceable in every jurisdiction. The form of the agreement must be approved by Dryject. The franchisee is responsible for seeking their own professional advice regarding the adequacy and enforceability of these agreements.
Dryject franchisees must use their best efforts to prevent Key Employees from using the licensed rights in connection with any competing business or from operating a competing business that imitates the Dryject franchise. If a franchisee believes a Key Employee has violated the non-disclosure, non-solicitation, or non-competition agreement, they must immediately notify Dryject and cooperate in protecting Dryject's licensed rights, including participating in lawsuits if necessary. Franchisees must provide Dryject with a copy of each Key Employee's signed agreement before the employee begins the Initial Training Program and before the franchisee discloses Dryject's Confidential Information to the employee.