factual

What happens to a Dryject franchise in the event of the franchisee's death or disability?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event of Your death, mental incapacity or permanent disability or that of any person with a controlling interest in You, the executor, administrator, or personal representative of that person shall transfer his or her interest to a third party approved by Us within three (3) months after such death, mental incapacity or permanent disability. Such transfers, including, without limitation, transfers by devise or inheritance, shall be subject to the same restrictions and conditions as any inter vivos transfer. However, in the case of a transfer by devise or inheritance, if the heirs or beneficiaries of any deceased person are unable to fully satisfy the conditions contained in this Agreement, the personal representative of the deceased shall have a reasonable time, in Our sole discretion, to dispose of the deceased's interest in the Franchise, which disposition will be subject to all the terms and conditions for transfer contained in this Agreement. If the deceased's interest is not transferred within a reasonable time, as determined by Us in Our sole discretion, We may terminate this Agreement. The term "permanent disability" shall mean a mental, physical or emotional disability, incapacity, impairment, or condition that is reasonably expected to prevent or actually does prevent You (or an Owner controlling You) from supervising the management and operation of the Franchised Business for a period of one hundred and twenty (120) days from the onset of such disability, incapacity, impairment or condition. In any event, the Franchised Business must at all times be managed by a designated manager who has complied with all of Our training requirements, regardless of any death, mental incapacity or permanent disability covered by this Section.

30. OPERATION OF FRANCHISED BUSINESS IN THE EVENT OF ABSENCE, INCAPACITY OR DEATH

In order to prevent any interruption of the business of the Franchised Business which would cause harm to such business and thereby depreciate its value, You authorize Us, in the event that You are

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 39–41)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, in the event of the franchisee's death, mental incapacity, or permanent disability, or that of a person with a controlling interest, their interest must be transferred to a Dryject-approved third party within three months. This transfer is subject to the same restrictions and conditions as any transfer made during the franchisee's lifetime. If the heirs or beneficiaries cannot meet the agreement conditions, the deceased's representative has a reasonable time, determined by Dryject, to dispose of the franchise interest, again subject to the agreement's transfer terms. If the interest isn't transferred in a reasonable time, Dryject may terminate the agreement.

The FDD defines "permanent disability" as a mental, physical, or emotional condition that prevents the franchisee (or controlling owner) from managing the business for 120 days or more. Regardless of death, incapacity, or disability, the Dryject franchise must always be managed by a designated manager who has met Dryject's training requirements.

To prevent business interruption that could harm the franchise, the franchisee authorizes Dryject to act in the event of their absence, incapacity, or death. This ensures the continued operation and value of the Dryject business. This is a fairly standard clause in franchise agreements, designed to protect the brand and the interests of both the franchisor and other franchisees. Prospective franchisees should consider the implications of these provisions for their families and business partners.

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.