What happens if a Dryject franchisee fails to maintain the required insurance?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Should You, for any reason, fail to procure or maintain the insurance required by this Agreement, You shall be considered in Material Breach of this Agreement.
In such event, We shall then have the right and authority (but not the obligation) to procure such insurance and to charge the cost of such insurance to You, which charges, together with a reasonable fee for Our expenses in
taking such action, shall be payable by You immediately upon notice from Us.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, failing to maintain the required insurance constitutes a material breach of the Franchise Agreement. If a Dryject franchisee fails to procure or maintain the necessary insurance, Dryject has the right, but not the obligation, to obtain the insurance themselves.
In the event that Dryject chooses to procure the insurance, the franchisee will be charged for the cost of the insurance. Additionally, Dryject will charge a reasonable fee to cover their expenses for taking such action. The franchisee is required to pay these charges immediately upon receiving notice from Dryject.
This clause protects Dryject from potential liabilities arising from the franchisee's operations. It also ensures that the business maintains adequate coverage, which is a standard requirement in most franchise agreements. Franchisees should ensure they understand the insurance requirements and maintain the necessary coverage to avoid these penalties and potential breaches of contract.