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How does the Dryject franchisor's definition of the business relationship (Item 8) affect the franchisee's assistance with advertising (Item 11)?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

ase of DryJect franchises may be included in advertising and other items produced and/or distributed using the Marketing Fund.

  • (d) Except when advertising cooperatively with other franchisees or with Us, You are prohibited from advertising outside Your Designated Territory. Unless granted specific written permission to the contrary, Your local advertising activity is limited to direct mail, print and broadcast media, speaking engagements, networking events and all other types of activity designed to encourage and solicit business only within Your Designated Territory. If Your Designated Territory lies within an Area of Dominant Influence (ADI) of media sources located outside of Your Designated Territory, and if other franchisee- or Franchisor- or affiliate-owned units lie within the same ADI, then We reserve the right to require You and other franchisees to cooperate and participate in advertising through that media source on a cooperative basis.
  • (e) We reserve the right to require You to cooperate and participate in certain special promotional events or campaigns that may from time to time be sponsored by Us, other franchisees, or both.
  • (f) We may develop and provide creative materials for local and regional advertising and make them available to You for publication or distribution in Your market area at Your own expense. We may provide specific guidelines for advertising initiated by Our franchisees and We reserve the right to disapprove advertising, that in Our sole judgment, is not in accordance with Our guidelines.
  • (g) Immediately upon notification, You shall discontinue any advertising that would, in Our sole opinion, be detrimental to the DryJect System, Marks, Us, Our affiliates or other franchisees. You

agree that upon termination, transfer, or expiration of this Agreement, You shall immediately remove all advertising that You control and notify all advertising sources that Your advertising must be removed and/or canceled immediately. For advertising that cannot be immediately canceled, You are responsible for any and all costs related to such advertising until such time as it can be canceled or it expires.

22. FINANCIAL INFORMATION, AUDITS

  • (a) You shall keep and maintain during the Term of this Agreement and any renewal periods, and shall preserve for a minimum of seven (7) years thereafter, full, complete and accurate books of account in accordance with generally accepted accounting standards and practices, which books shall accurately reflect the Gross Revenues of the Franchised Business; and any and all deductions expressly permitted by this Agreement; marketing activities; payroll; closeout sheets, payroll and accounts payable.

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, the definition of the business relationship between Dryject and its franchisees impacts advertising in several ways. Dryject emphasizes that the relationship is strictly that of franchisor and franchisee, with each party operating as an independent business. This means franchisees are generally responsible for their own advertising efforts and expenses within their designated territory. However, Dryject retains significant control over advertising to ensure brand consistency and effectiveness.

Dryject franchisees are generally prohibited from advertising outside their designated territory unless they obtain specific written permission. This restriction ensures that advertising efforts are focused and do not overlap or compete with other franchisees. Dryject also reserves the right to require franchisees to participate in cooperative advertising efforts, especially in areas where media markets overlap multiple territories. This collaborative approach aims to maximize the impact of advertising campaigns and prevent conflicting messages.

Dryject may provide creative materials and guidelines for local and regional advertising, but franchisees are responsible for the costs associated with publishing or distributing these materials. Dryject also retains the right to disapprove any advertising that does not comply with its guidelines or that it deems detrimental to the Dryject system, marks, or reputation. This oversight ensures that all advertising aligns with Dryject's brand standards and promotes a consistent image. Franchisees must discontinue any advertising immediately upon notification if Dryject deems it detrimental.

Dryject also maintains a Marketing Fund, which is not a trust, and Dryject is not a fiduciary or trustee of the Marketing Fund or the monies in the Marketing Fund. No portion of the Marketing Funds collected will be used principally to sell franchises. However, a brief statement about availability of information regarding the purchase of DryJect franchises may be included in advertising and other items produced and/or distributed using the Marketing Fund.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.