What happens if a Dryject franchisee defaults on a loan or lease required to operate the franchise?

According to Dryject's 2025 Franchise Disclosure Document, if a franchisee defaults on any loan or lease required to operate the franchised business and fails to correct that default by the date specified by the lender or lessor, it is considered a breach of the Franchise Agreement.

This failure to cure the default can lead to Dryject taking action against the franchisee. While the specific actions Dryject might take aren't detailed in this section, Item 8 indicates that such a default is a failure to comply with the requirements of the agreement. Item 8 also states that failure to carry out the terms of the agreement in good faith constitutes a default.

It is important for prospective Dryject franchisees to understand their financial obligations and ensure they can meet them to avoid defaulting on loans or leases. Franchisees should carefully review the terms of any loan or lease agreements and seek professional advice if needed. Understanding the consequences of default and maintaining open communication with lenders and Dryject can help mitigate potential issues.