If Dryject or another franchisee supplies goods or services within a Dryject franchisee's Designated Territory under the reserved accounts exception, is the original franchisee entitled to any compensation?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) You shall have the right to operate a DryJect Franchised Business, and to use Our Licensed Rights in Franchisee's Designated Territory. We will not grant to others (nor reserve unto ourselves except as specified in this Agreement) the right to operate a DryJect business within Your Designated Territory. However, We reserve the right to establish policies pertaining to the sale of products and services at discounted rates to customers operating multiple facilities, some of which may be located within Your Designated Territory ("Reserved Accounts"). In the event that You do not agree to provide a Reserved Account with the contracted goods or services for a facility operated within Your Designated Territory at the discounted rate, or You are unable to provide the required goods or services within Your Designated Territory, We, any of Our affiliates or another of Our franchisees may supply the goods or services, and You shall not be entitled to receive any fee or other compensation associated with the transaction.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, a Dryject franchisee is not entitled to any compensation if Dryject, its affiliates, or another franchisee supplies goods or services to a Reserved Account within the franchisee's Designated Territory under certain conditions. Specifically, this applies when the franchisee either does not agree to provide the contracted goods or services at a discounted rate for a facility within their territory or is unable to provide the required goods or services within their Designated Territory.
This policy regarding Reserved Accounts has significant implications for a Dryject franchisee. It means that Dryject retains the right to service large, multi-facility customers, even if some of those facilities are located within an individual franchisee's exclusive territory. This could potentially reduce the revenue a franchisee might otherwise expect to generate from their territory.
However, this policy also ensures that Dryject can maintain consistent pricing and service levels for large national or regional accounts, which could be crucial for attracting and retaining these important customers. The franchisee should consider the potential impact of this policy on their revenue projections and discuss with Dryject the process for identifying and managing Reserved Accounts within their territory.