What is the geographic scope of the non-compete restriction for the Signer regarding Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Except to the extent prohibited by the laws of the state where the Franchised Business is located, in order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
- (a) Directly or indirectly, for himself/herself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States; or
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Signer (spouse or domestic partner of the franchisee) is subject to a non-compete agreement. During the time the franchisee is a franchisee and for two years following termination or expiration of the franchise agreement, the Signer cannot engage in or acquire any financial interest in a business the same as or similar to Dryject. This restriction applies to businesses that are, or are intended to be located, within the United States.
This means that the Signer is restricted from participating in a competing business anywhere in the United States during the term of the franchise and for two years after the franchise ends. This restriction is designed to protect Dryject's goodwill and trade secrets by preventing those with knowledge of the Dryject system from directly competing with the franchise.
It is important for prospective franchisees and their spouses to carefully consider the implications of this non-compete agreement. The Signer should understand that their business activities will be limited geographically to the United States for a period extending beyond the term of the franchise. Franchisees should discuss this restriction with their spouse or domestic partner to ensure they are comfortable with the limitations it imposes.