If a DryJect franchisee is a business entity, what agreement must each shareholder/member execute and deliver?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ill actively and substantially participate personally in the beneficial ownership and management of the DryJect Franchised Business.
- (b) In the event You are a business entity (including but not limited to a corporation, a limited liability corporation, a partnership, a limited liability partnership, a trust), in addition to being newly formed, You must complete and sign the Principal Owner's Statement attached to this Agreement as Addendum D and each individual with an ownership interest in You must also sign Addendum D. Further, You represent, warrant and covenant that:
- (i) You are newly formed and duly organized and validly exist under the laws of the state in which You were formed;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to DryJect's 2025 Franchise Disclosure Document, if the franchisee is a business entity, each shareholder or member must execute and deliver the Confidentiality and Non-Competition Agreement. This agreement is detailed in the Operations Manual, and a copy must be provided to DryJect.
This requirement ensures that all individuals with an ownership stake in the DryJect franchise are bound by confidentiality and non-competition obligations. This is a standard practice in franchising to protect the franchisor's trade secrets, customer relationships, and overall brand integrity. By having each shareholder or member sign this agreement, DryJect aims to prevent potential conflicts of interest and ensure that all parties are committed to upholding the franchise's standards.
The Confidentiality and Non-Competition Agreement typically restricts shareholders/members from disclosing confidential information about the DryJect system and from engaging in competitive businesses during and after their involvement with the franchise. The specific terms of the agreement are found in the Operations Manual, which DryJect provides to franchisees. Prospective franchisees should carefully review this agreement to understand the full scope of their obligations.
It is important for potential DryJect franchisees to understand that failure to comply with these requirements could result in legal action or termination of the franchise agreement. Therefore, franchisees operating as business entities must ensure that all shareholders/members are fully aware of and willing to adhere to the terms of the Confidentiality and Non-Competition Agreement.