How does the Dryject franchisor's definition of the business relationship (Item 8) affect the franchisee's obligations regarding royalty service fees (Item 6)?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
39. REMEDIES CUMULATIVE
All rights and remedies of the parties hereto shall be cumulative and not alternative, in addition to and not exclusive of any other rights or remedies which are provided for in this Agreement or which may be available at law or in equity in case of any actual or threatened breach, failure or default of any term, provision or condition of this Agreement or any other agreement between You and Us or Our affiliates. The rights and remedies of the parties under this Agreement shall be continuing and may be exercised at any time or from time to time. The expiration, earlier termination, or exercise of Our rights pursuant to Section 32 of this Agreement shall not discharge or release You from any liability or obligation then accrued, or any liability or obligation continuing beyond, or arising out of, the expiration, the earlier termination, or the exercise of such rights under this Agreement.
40. LIMITATIONS OF CLAIMS
Except with regard to Your obligation to pay Us and Our affiliates Royalty Service Fees, Marketing Fund Fees and other fees or payments of every nature and kind due from You pursuant to this Agreement or otherwise, any claims between the parties must be commenced within one (1) year from the date on which the party asserting the claim knew or should have known of the facts giving rise to the claim or such claim shall be barred. The parties understand that this time limit might be shorter than otherwise allowed by law. You agree that the sole recourse for claims arising between the parties shall be against Us or Our successors and assigns. You agree that Our shareholders, members, managers, directors, officers, employees and agents and Our affiliates shall not be personally liable nor named as a party in any action between Franchisee and Franchisor. You and We further agree that, in connection with any such proceeding, each must submit or file any claim which would constitute a compulsory counterclaim (as defined by Rule 13 of the Federal Rules of Civil Procedure) within the same proceeding as the claim to which it relates. Any such claim that is not submitted or filed as described above shall be forever barred. The parties agree that any proceeding will be conducted on an individual, not a class-wide, basis and that a proceeding bet
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Item 8 outlines various aspects of the business relationship between the franchisor and franchisee. Specifically, section 40, "Limitations of Claims," addresses the franchisee's obligation to pay royalty service fees.
This section clarifies that there is a limitation on claims, except for the franchisee's obligation to pay Dryject and its affiliates Royalty Service Fees, Marketing Fund Fees, and other fees or payments. This means that while other types of claims between Dryject and the franchisee have a one-year time limit for commencement, the franchisee's obligation to pay fees is not subject to this limitation. The franchisee is obligated to pay these fees, and Dryject can pursue these payments without being restricted by the one-year claim limitation that applies to other disputes.
In practical terms, this means a Dryject franchisee must be diligent in paying all required fees, as Dryject retains the right to pursue these payments without the time constraints imposed on other types of claims. This places a significant responsibility on the franchisee to ensure timely and accurate payment of all fees to avoid potential legal action or other repercussions from Dryject. This clause underscores the importance of understanding and adhering to the financial obligations outlined in the franchise agreement.