If the DryJect franchisee is a business entity, what agreement must each of its shareholders/members execute and where can it be found?
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 the 2025 DryJect Franchise Disclosure Document, if the franchisee is a business entity, each of its shareholders or members must execute and deliver the Confidentiality and Non-Competition Agreement. This agreement is detailed within the DryJect Operations Manual. The franchisee is then required to provide a copy of this signed agreement to DryJect.
This requirement ensures that all individuals with an ownership stake in the DryJect franchise are legally bound to protect DryJect's confidential information and refrain from competing with the franchise, both during the franchise term and for a specified period afterward. This is a common practice in franchising to safeguard the franchisor's business model, trade secrets, and customer relationships.
The Confidentiality and Non-Competition Agreement typically outlines the scope of confidential information, the duration of the non-compete period, and the geographic area in which competition is restricted. By having all shareholders or members sign this agreement, DryJect aims to prevent potential conflicts of interest and maintain the integrity of its franchise system. Prospective franchisees should carefully review the Operations Manual to understand the specific terms and conditions of the Confidentiality and Non-Competition Agreement before investing in a DryJect franchise.