factual

What happens to the Dryject franchisee's interest in telephone numbers upon termination?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

lassified, yellowpage, and other telephone directory listings (collectively, the "Numbers and Listings") related to the Franchised Business or the Marks (all of which right, title, and interest is referred to herein as "Franchisee's Interest").

  • 2.2 Transfer. On Termination of the Franchise Agreement, if Franchisor directs Franchisee to do so, Franchisee will immediately direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Numbers and Listings: (i) to transfer all Franchisee's Interest in such Telephone Numbers and Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer. In the event Franchisor does not desire to accept any or all such Telephone Numbers and Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Numbers and Listings or will take such other actions with respect to the Telephone Numbers and Listings as Franchisor directs.

  • 2.3 Appointment; Power of Attorney. Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Telephone Listing Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, on Termination of the Franchise Agreement, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Telephone Listing Agreement. Franchisee further agrees that this appointment constitutes a power coupled with an interest and is irrevocable until Franchisee has satisfied all of its obligations under the Franchise Agreement and any and all other agreements to which Franchisee and any of its affiliates on the one hand, and Franchisor and any of its affiliates on the other, are parties, including, without limitation, this Telephone Listing Agreement. Without limiting the generality of the foregoing, Franchisee hereby grants to Franchisor the power and right to do the following:

  • 2.3.1 Direct the Telephone Companies to transfer all Franchisee's Interest in and to the Telephone Numbers and Listings to Franchisor;

  • 2.3.2 Direct the Telephone Companies to terminate any or all of the Telephone Numbers and Listings; and

  • 2.3.3 Execute the Telephone Companies' standard assignment forms or other documents in order to affect such transfer or termination of Franchisee's Interest.

  • 2.4 Certification of Termination. Franchisee hereby directs the Telephone Companies that they shall accept, as conclusive proof of Termination of the Franchise Agreement, Franchisor's written statement, signed by an officer or agent of Franchisor, that the Franchise Agreement has terminated.

  • 2.5 Cessation of Obligations.

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to the 2025 Dryject Franchise Disclosure Document, upon termination of the Franchise Agreement, Dryject franchisees are required to transfer their interest in telephone numbers and listings to the franchisor. Specifically, the franchisee must direct telephone companies to transfer all rights to the telephone numbers and listings to Dryject. The franchisee must also execute any necessary documents to facilitate this transfer.

Dryject is granted the authority to act as the franchisee's attorney-in-fact to ensure the transfer of telephone numbers and listings. This includes the power to direct telephone companies to transfer or terminate the numbers and listings and to sign documents on behalf of the franchisee. This appointment is considered irrevocable until the franchisee fulfills all obligations under the Franchise Agreement and related agreements.

Once the telephone companies have transferred the franchisee's interest to Dryject, the franchisee no longer has any rights or obligations related to those telephone numbers and listings, although the franchisee remains liable for any outstanding payments owed to the telephone companies for obligations incurred before the transfer. This ensures that Dryject maintains control over the business's contact information and customer access points after a franchise agreement ends, which is a fairly standard practice in franchising to protect brand consistency and customer relationships.

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.