How does the Dryject franchisor's definition of the business relationship (Item 8) affect the franchisee's obligations regarding site selection (Item 9)?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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8. BUSINESS RELATIONSHIP
- (a) We and You agree and acknowledge that each of us is an independent business entity or person; that Our only relationship is as franchisor and franchisee as specified in this Agreement; that this Agreement does not create a fiduciary relationship between the parties. Neither of us is the employer, employee, agent, partner, fiduciary or co-venturer of or with the other, each being independent of the other. Neither party is liable or responsible for the other's debts or obligations and neither party shall be obligated for any damages to any person or property directly or indirectly arising out of the operation of the other party's business. We and You agree that neither of us will hold ourselves out to be the agent, employer, partner or co-venturer of the other, and that neither of us has the authority to create or assume in the other's name or on their behalf, any obligation, express or implied, or to act or purport to act as agent or representative for any purpose whatsoever and cannot bind or incur liability on behalf of the other.
- (b) You and We agree that any materials, guidance or assistance that We provide with respect to the terms and conditions of employment for Your employees, employee hiring, firing and discipline, and similar employment-related policies or procedures, whether in the Operations Manual or otherwise, are solely for Your optional consideration and use. Those materials, guidance and assistance do not form part of the mandatory System Standards. You will determine to what extent, if any, these materials, guidance or assistance should apply to Your employees. You acknowledge that We do not dictate or control labor or employment matters for franchisees and their employees and will not be responsible for the safety and security of Your employees or patrons. You are solely responsible for determining the terms and conditions of employment for all Your employees, for all decisions concerning the hiring, firing and discipline of Your employees, and for all other aspects of labor relations and employment practices. All employees or agents hired or engaged by or working for You will be only Your employees or agents and will not for any purpose be considered Our employees or agents or the owner of the Marks, nor subject to Our control, and in particular, We will have no authority to exercise control over the hiring or termination of employees, independent contractors, or others who work for You, their compensation, working hours or conditions, or the day-to-day activities of those people, except to the extent necessary to protect the Marks. It is understood that You will have sole responsibility for Your employees and all acts of Your employees, and all employment-related decisions involving wages, benefits, hours of work, scheduling, hiring, firing, discipline, supervision, record keeping, taxes and other withholding, social security contributions, Medicare contributions, unemployment fund contributions and all other terms and conditions of employment.
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the franchisor defines the business relationship with franchisees as independent, which directly impacts the franchisee's site selection responsibilities. Item 8 clarifies that Dryject and the franchisee are independent business entities, with their relationship solely defined by the franchise agreement. This means Dryject franchisees are not considered employees, agents, partners, or co-venturers of Dryject. Consequently, franchisees are responsible for their own debts, obligations, and any damages arising from their business operations.
Regarding site selection, Item 8 emphasizes the franchisee's autonomy. It states that it is the franchisee's "sole responsibility" to locate a suitable site for their Dryject franchised business. Franchisees have 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' territorial rights. However, franchisees cannot lease or purchase a premises to operate the business office outside of their designated territory. The franchisee is also responsible for notifying Dryject of any relocation and bearing all associated costs.
This independent relationship means Dryject offers materials, guidance, or assistance regarding employment-related policies as optional considerations, not mandatory System Standards. Franchisees determine the extent to which these materials apply to their employees and are solely responsible for all employment-related decisions. This reinforces that Dryject franchisees have significant control over their business operations, including site selection and employee management, within the guidelines set by the franchise agreement. The hands-off approach regarding site selection places the onus on the franchisee to conduct thorough market research and due diligence to ensure the chosen location is viable for their Dryject business.