What happens if I deliberately understate the amount due to Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
I (We, if joint account) the undersigned hereby authorize DryJect Management, LLC, a Pennsylvania limited liability company, with principal offices at 307 Lincoln Avenue, Hatboro, Pennsylvania 19040, to initiate electronic transfer of funds out of my (our) primary Checking or Savings selected below at the Financial Institution indicated, for payment of Royalty Service Fees or other amounts which I may owe DryJect Management, LLC. I (We) acknowledge that the origination of Automated Clearing House (ACH) transactions to my (our) account must comply with the provisions of the United States law. All costs and expenses, including any resulting from the dishonor by my (our) bank of any electronic funds transfer, shall be my (our) sole responsibility. This authorization is irrevocable and shall remain in effect until the termination or expiration of the underlying Franchise Agreement with DryJect Management, LLC. If I (we) do not have enough money in my (our) account to cover the transfer or if my (our) Financial Institution for any other reason refuses to honor a transfer, I (we) will separately pay for the charges I (we) owe under my (our) Franchise Agreement with DryJect Management, LLC.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
I am unable to provide information about the consequences of understating the amount due to Dryject, according to the 2025 Franchise Disclosure Document. The provided excerpts do not discuss the penalties or repercussions for deliberately understating royalty service fees or other amounts owed to Dryject. The document does include an Electronic Funds Transfer (EFT) Authorization Agreement, which states that if a franchisee does not have enough money in their account to cover the transfer or if their Financial Institution refuses to honor a transfer, the franchisee will separately pay for the charges they owe under their Franchise Agreement with Dryject Management, LLC.
However, this section focuses on insufficient funds or refusal of transfer rather than deliberate understatement. The auditor's responsibilities are detailed, including detecting material misstatements due to fraud, which could be relevant if underreporting is considered fraudulent. However, the specific consequences for a franchisee who deliberately understates their dues are not outlined.
To fully understand the ramifications of underreporting, a prospective Dryject franchisee should ask the franchisor directly about the specific policies and penalties related to underreporting revenue or other financial information. This information is crucial for making an informed decision about investing in a Dryject franchise.