If the 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;
- (ii) You are duly qualified and are authorized to do business in each jurisdiction in which Your business activities or the nature of the properties owned by You require such qualification;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 DryJect Franchise Disclosure Document, if the franchisee is a business entity, each shareholder or member must execute and deliver the Confidentiality and Non-Competition Agreement as outlined in the Operations Manual. The franchisee must then provide a copy of this agreement to DryJect.
This requirement ensures that all individuals with an ownership stake in the DryJect franchise are bound by the confidentiality and non-competition terms, protecting DryJect's trade secrets and market position. This is a common practice in franchising to maintain brand consistency and prevent sensitive information from being disclosed to competitors.
Furthermore, DryJect also requires that any individual with a 20% or greater ownership interest in the business entity must sign the Guaranty Agreement attached to the Franchise Agreement as Addendum C. The original signed Guaranty Agreement must be provided to DryJect. This ensures that individuals with significant ownership are personally liable for the franchise's obligations, providing additional security to DryJect.