What are the Dryject franchisee's obligations regarding site selection (Item 9) and how does this relate to the franchisor's approval process for the territory (Item 12)?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and | Franchise Agreement (FA) § | Item 11 |
| acquisition/lease | 16 |
Item 12 TERRITORY
The Franchise Agreement grants you the right to operate a Franchised Business only within a Designated Territory. You must select a Territory, subject to our approval. Our approval will be based upon a variety of factors, including the viability of the proposed territory in relation to the number of golf courses, the number of potential parks and recreation facilities, junior and senior high schools, colleges and universities and other large areas of turf which could benefit from the services offered by the Franchise Owner. You will receive a Designated Territory based on an area sufficient to encompass a minimum of the equivalent of 200 eighteen-hole golf courses within the boundaries of the proposed territory. You may not relocate the Franchised Business without our prior written consent.
It is Your sole responsibility to locate a suitable site for Your DryJect Franchised Business. You shall have the right to operate the business office of the Franchised Business from Your home. You shall have the right to relocate the business office of Franchised Business to another location, provided that You have received Our prior written consent and any such relocation does not infringe on the territorial rights of any other franchisee, Franchisor-owned or affiliate-owned businesses. You shall not have the right to lease or purchase a premises to operate the business office outside of Your Designated Territory. In the event You relocate the business office of the Franchised Business, You shall notify Us of the new location of the business office of the Franchise Business prior to relocation. You shall bear all of the costs of any such relocation.
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees have obligations regarding site selection, as detailed in Item 9 and further specified in Item 11 of the Franchise Agreement. Specifically, the franchisee is responsible for site selection, acquisition, and leasing. The franchisee also has the right to operate the business office from their home and can relocate the business office, provided they obtain Dryject's prior written consent and the relocation does not infringe on other franchisees' territories. The franchisee bears all costs associated with any relocation.
Item 12 states that Dryject grants the franchisee the right to operate within a Designated Territory, which the franchisee must select, subject to Dryject's approval. Dryject's approval is based on factors such as the viability of the proposed territory, considering the number of golf courses, parks, recreation facilities, schools, universities, and other large turf areas that could benefit from Dryject's services. The Designated Territory will be sufficient to encompass a minimum equivalent of 200 eighteen-hole golf courses within its boundaries.
Dryject's approval process ensures that the territory is viable and meets the minimum requirements for potential business. This process protects both Dryject and the franchisee by ensuring a reasonable opportunity for success. The franchisee cannot relocate without Dryject's consent, which maintains the integrity of the established territories and prevents conflicts between franchisees. Dryject also retains the right to modify business operations to meet changing consumer demands and market conditions, requiring franchisees to adopt these changes at their own expense.
Prospective franchisees should carefully consider these obligations and approval processes, as they directly impact their ability to operate and grow their Dryject franchise. Understanding the criteria Dryject uses to approve territories is crucial for selecting a location with sufficient potential. Additionally, franchisees should be prepared to adapt to changes mandated by Dryject to remain competitive and compliant with system standards.