If Dryject exercises its step-in rights, what does the franchisee agree to regarding Dryject's actions or omissions?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) During a step-in period, We will maintain in a separate account, all Gross Revenues of the Franchised Business. From that account We will pay all expenses of the Franchised Business, which will include the Royalty Service Fee, all Marketing Fund contributions or payments, and reasonable compensation and expenses for Our representatives. If these step-in rights are exercised, You agree to hold Us harmless and hold harmless Our representatives for all actions or omissions which occur during the course of the temporary operation. You agree to pay Our reasonable attorneys' fees and costs which might arise from the exercise of these step-in rights. Nothing in this Section 33 will prevent Us from exercising any other rights which We may have under this Agreement, including the right to terminate the Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, if Dryject exercises its step-in rights, the franchisee agrees to hold Dryject and its representatives harmless for all actions or omissions that occur during the temporary operation of the franchised business. The franchisee also agrees to cover Dryject's reasonable attorney's fees and costs that may arise from the exercise of these step-in rights.
Dryject may exercise its step-in rights if a material default occurs and remains uncured, is not subject to cure, or if the franchisee's actions jeopardize the integrity of the Dryject marks or system. Reasons for Dryject to exercise these rights include the franchisee's inability to operate the business due to absence or incapacitation, failure to meet monetary obligations, failure to remove non-consensual liens, or material operational problems.
During the step-in period, Dryject will maintain a separate account for all gross revenues of the franchised business. From this account, Dryject will pay all expenses of the business, including royalty service fees, marketing fund contributions, and reasonable compensation and expenses for its representatives. It is important to note that Dryject's ability to exercise step-in rights does not prevent them from exercising any other rights they may have under the agreement, including termination.