factual

If Dryject designates certain suppliers for equipment or supplies, what options does the franchisee have for purchasing?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

Approved Suppliers. You must purchase specified products, procure all equipment, inventory, and signage required for the operation of the Franchised Business solely from suppliers (including distributors, manufacturers, and other sources) who have been approved in writing by us. We maintain written lists of approved items of equipment, fixtures, inventory, and supplies (by brand name and/or by standards and specifications) and lists of approved suppliers for those items. We update our lists periodically and issue the updated lists to all franchise owners.

We will furnish our standards and specifications, as well as our criteria for supplier approval, to franchise owners on request, but only on a confidential basis. All suppliers and approved vendors will be listed in the Manual, which must always be followed, even as modified by us periodically.

If you desire to purchase any items from an unapproved supplier, you or the supplier must submit to us a written request for approval. We will then examine the vendor or supplier, which examination may include a review of product specifications, inspection of the vendor/supplier's facilities, actual testing (or demo) of their product, inquiries as to general reputation and reliability, and all other factors as we deem important. We must respond to your request in writing within 30 days. Our approval will not be unreasonably withheld, but must be obtained in writing. In the event we do not provide you with a written decision, the request will be deemed denied. We reserve the right to require that a representative be permitted to inspect the supplier's facilities and samples from the supplier be delivered to us or our designee for testing. We reserve the right to charge you a fee for reviewing a proposed supplier of any goods to be used in connection with the Franchise. If we determine that it is necessary to inspect the supplier's facilities or conduct tests, we will require you or the supplier to pay our actual costs incurred for this inspection and testing. We may, periodically, re-inspect the facilities and products of any previously approved supplier and may revoke our approval if the supplier fails to meet any of our standards and specifications at any time. We update our lists of approved suppliers periodically and issue the updated lists to all franchise owners.

Specifications and Standards. You must purchase certain products, supplies and equipment under specifications and standards that we periodically establish either in the Franchise Agreement, Manual or notices we send to you occasionally. These specifications are established to provide standards for performance, durability, design and appearance. We will notify you whenever we establish or revise any of our standards or specifications, or if we designate new or additional approved suppliers for products, equipment or services. Even if we designate and approve a supplier, you will not be obligated to purchase any items from it, except as noted earlier.

We do not currently, but reserve the right to negotiate purchase agreements for certain equipment or supplies. You may purchase such equipment or supplies from these designated suppliers or from any approved supplier on the terms as you negotiate. The Manual contains details relating to these purchases. At the time you open the Franchised Business you must stock the initial inventory of products, equipment, services and supplies required by us as outlined in the Manual or otherwise in writing. After the opening of your Franchised Business, you must stock and maintain all types of approved products and equipment in quantities sufficient to meet reasonably anticipated customer demands.

Computer Specifications. If you do not own a computer, before you open your Franchised Business you will need to buy a computer to run your business and communicate with us and your

customers; however, we do not specify a particular brand, type, components nor function of your computer hardware or software.

Insurance Specifications. Before you open your Franchised Business, you must obtain certain minimum insurance coverage and provide certificates of insurance evidencing compliance not less than 10 days prior to opening the Franchised Business. You must purchase and maintain workers' compensation in the minimum amount required by state law; general liability insurance, including broad form contractual liability, products and completed operations in the aggregate amount of $2,000,000;

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 19–24)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, franchisees must purchase specified products, equipment, inventory, and signage from suppliers approved in writing by Dryject. Dryject maintains written lists of approved items, including equipment, fixtures, inventory, and supplies, identified by brand name or by standards and specifications, and lists of approved suppliers for those items. These lists are updated periodically and issued to all franchise owners.

Dryject will furnish its standards and specifications, as well as its criteria for supplier approval, to franchise owners upon request on a confidential basis. The approved suppliers and vendors are listed in the Manual, which must be followed, even as modified by Dryject periodically. If a franchisee wants to purchase items from an unapproved supplier, they or the supplier must submit a written request for approval to Dryject. Dryject will then examine the vendor or supplier, which may include a review of product specifications, inspection of the vendor/supplier's facilities, actual testing of their product, and inquiries as to general reputation and reliability. Dryject must respond to the request in writing within 30 days, and approval will not be unreasonably withheld but must be obtained in writing. If Dryject does not provide a written decision, the request will be deemed denied.

Dryject reserves the right to require inspection of the supplier's facilities and samples for testing and may charge a fee for reviewing a proposed supplier. They may also re-inspect previously approved suppliers and revoke approval if they fail to meet Dryject's standards. Even if Dryject designates and approves a supplier, franchisees are not obligated to purchase items from them, except as noted earlier. Franchisees must purchase certain advertising and promotional materials from approved vendors only and must not engage in any advertising unless Dryject has previously approved the medium, content, and method. Prior to opening the franchised business, franchisees must purchase certain products, supplies, and equipment from designated suppliers, including proprietary equipment from Dryject, such as three model 4820 DryJect® machines and spare parts. Once business operations commence, franchisees may purchase non-proprietary products, supplies, or equipment from any approved supplier or vendor, except for the proprietary products noted above.

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.