How does the Dryject franchisor's assistance with identifying equipment and supplies (Item 11) relate to the franchisee's initial inventory costs (Item 7)?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
Item 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Pre-Opening Obligations.
Before you open your Franchised Business, we will:
- B. Identify the equipment, inventory, materials and supplies necessary for the Franchised Business to begin operations, including the minimum standards and specifications that must be satisfied and the approved suppliers from whom these items may be purchased or leased (including us and our affiliates). (FA, § 9)
- C. Designate certain proprietary equipment and products (e.g. DryJect® machines and certain parts), at your expense, manufactured by our affiliates. (FA, § 7 & 15)
[Item 7: ESTIMATED INITIAL INVESTMENT]
Note 2. Initial Inventory.
We estimate that your initial inventory costs will be approximately $2,500 to $3,500 and will consist of certain inventory items that you must purchase from us, our affiliate and approved vendors.
Note 4. Equipment Package.
The minimum required equipment package costs $166,500 and must be purchased from us. This minimum equipment package will consist of at least three model 4820 DryJect® machines at $55,500 each and certain spare parts. With acceptable credit, the model 4820 DryJect® machine can be leased for approximately $1,000 per month per machine from various third party leasing companies.
Although we are not required to perform these services under the Franchise Agreement, we may provide the following guidance and assistance on a continuing basis to enhance the growth and performance of the System:
- A. We may continue to search for more cost-efficient sources of non-proprietary supplies. With the strength of group purchasing, we may endeavor to purchase supplies and inventory at reduced prices.
We estimate that approximately 55% of your expenditures for leases and purchases in establishing your DryJect® Franchised Business will be for goods and services that must be purchased either from us, our affiliate or a designated supplier, or in accordance with our standards and specifications.
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the franchisor provides assistance in identifying necessary equipment, inventory, materials, and supplies before the franchise opens. This assistance includes specifying minimum standards, specifications, and approved suppliers, which may include Dryject and its affiliates. Item 7 estimates the initial inventory costs to be approximately $2,500 to $3,500, consisting of items that franchisees must purchase from Dryject, its affiliate, or approved vendors. This indicates that Dryject guides franchisees in selecting the required initial inventory, which directly impacts the franchisee's initial investment.
Dryject also designates certain proprietary equipment and products, such as DryJect® machines and specific parts, that the franchisee must purchase at their own expense from Dryject's affiliates. The minimum required equipment package costs $166,500 and includes at least three model 4820 DryJect® machines at $55,500 each, along with spare parts. This equipment is a significant part of the initial investment and must be acquired from Dryject.
Furthermore, Dryject may continue to search for more cost-efficient sources for non-proprietary supplies and may endeavor to purchase supplies and inventory at reduced prices through group purchasing. This ongoing assistance could potentially help franchisees manage their inventory costs over time. The FDD also states that approximately 55% of the franchisee's expenditures for leases and purchases in establishing the DryJect® Franchised Business will be for goods and services that must be purchased either from Dryject, its affiliate, or a designated supplier, or in accordance with Dryject's standards and specifications.