What is the geographic restriction for a Dryject franchisee regarding involvement with a Competitive Business?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ctly, any other act deemed by Us to be injurious or prejudicial to the goodwill associated with Our Licensed Rights and Our System; or
- (ii) own, manage, maintain, operate, engage in, advise, consult with, invest in, be employed by or perform services as a director, officer, manager, representative, agent, or otherwise, or have any direct or indirect interest in any business that (a) specializes, in whole or in part, in offering to the public substantially similar products and/or services to those products and/or services offered by Your Franchised Business prior to the termination or expiration of this Agreement within a fifty (50) mile radius of any other franchisee's franchised business or any Franchisor-owned or affiliate-owned DryJect business (a "Competitive Business") or (b) grants franchises or licenses to others to operate a Competitive Business.
- (b) At any time, during the Term of this Agreement or thereafter, You shall not, either directly or indirectly, for You, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or other business entity, use, in connection with the operation of any business other than the Franchised Business, any of the Licensed Rights, or any other names, marks, systems, insignias, or symbols provided or approved by Us to You pursuant to this Agreement, or cause or permit any such business to look like, copy or imitate a DryJect Franchised Business or to be operated in a manner tending to have such effect.
- (c) You expressly acknowledge that You possess skills and abilities of a general nature and have other opportunities for exploiting such skills.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, a franchisee is restricted from involvement with a Competitive Business. This restriction applies both during the term of the Franchise Agreement and before its termination or expiration.
The geographic scope of this restriction extends to a 50-mile radius. Specifically, a Dryject franchisee cannot own, manage, operate, or invest in any business that offers substantially similar products or services to Dryject within a 50-mile radius of any other Dryject franchise or any Dryject-owned business. This prevents franchisees from directly competing with other franchisees or the franchisor within a defined geographic area.
This restriction also applies to granting franchises or licenses to others to operate a Competitive Business. The Dryject franchisee is prohibited from granting franchises or licenses to others to operate a Competitive Business. This measure ensures that the franchisee does not enable the expansion of competing businesses that could undermine the Dryject system. The FDD also states that if any of the covenants are found to exceed the duration, geography, or scope permitted by applicable law, the parties expressly agree that such restrictive covenant may be reformed or modified by the final judgement of a court of competent jurisdiction.