Can Dryject grant a franchisee rights to provide goods and services in contiguous territories?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement does not provide you with any options, rights of first refusal, or similar rights to acquire additional franchises within areas contiguous to your Designated Territory. We may, at our discretion, provide you with restricted, conditional and temporary rights to provide goods and services in contiguous territories so long as they have not been granted to other operators of franchised businesses. Neither continuation of your Franchise Agreement nor the size of the area within your Designated Territory is dependent upon your achieving any sales quotas, market penetrations or other contingencies.
Source: Item 12 — TERRITORY (FDD pages 33–34)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Franchise Agreement does not automatically grant franchisees rights to acquire additional franchises in areas next to their designated territory. However, Dryject retains the discretion to provide franchisees with restricted, conditional, and temporary rights to offer services in these adjacent territories, provided those territories have not already been assigned to other franchise operators. This means that while a franchisee's initial agreement doesn't guarantee expansion opportunities into neighboring areas, Dryject has the option to allow it under specific circumstances.
This discretionary power held by Dryject means that franchisees interested in expanding their service area need to negotiate with the franchisor for such opportunities. The grant of these rights is not assured and depends on Dryject's assessment of various factors, including the availability of the territory and the franchisee's performance. This contrasts with some franchise systems that offer franchisees a right of first refusal or other preferential treatment for contiguous territories.
It's important for potential Dryject franchisees to understand that these rights, if granted, are not permanent. They are described as restricted, conditional, and temporary, suggesting that Dryject can revoke or modify these rights at its discretion. The continuation of the Franchise Agreement and the size of the designated territory are not tied to achieving sales quotas or market penetration, which provides some security but also means that expansion is not guaranteed based on performance alone. Prospective franchisees should discuss the conditions under which Dryject grants these temporary rights and what criteria are used to evaluate such requests.