What is the geographic scope of the restriction on the trainee engaging in similar businesses to Dryject during employment?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Trainee of Franchisor's Trade Secrets, Trainee further undertakes and covenants that, during the time he is employed by Franchisee, he will not:
- (a) Directly or indirectly, for himself 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 the 2025 Dryject FDD, during the time a trainee is employed by a franchisee, the trainee is restricted from engaging in similar businesses to Dryject within the United States. Specifically, the trainee cannot directly or indirectly engage in or acquire any financial or beneficial interest in any business that is the same as or similar to that conducted by Dryject, if that business is located, or intended to be located, within the United States.
This restriction is put in place to protect Dryject's goodwill and unique qualities, as well as the confidentiality and value of its trade secrets. The trainee acknowledges that they will receive Dryject's trade secrets in confidence and will only use them in the course of their employment with the franchisee. This non-compete agreement ensures that the trainee's knowledge and skills gained while working with Dryject are not used to benefit a competing business within the United States during their employment.
For a prospective Dryject franchisee, this means they must ensure that their trainees sign and adhere to the Non-Disclosure, Non-Solicitation, and Non-Competition Agreements. This protects the Dryject system and trade secrets from being used by competitors. The franchisee is responsible for making sure the trainee understands and complies with these restrictions during their employment.