If the DryJect franchisee is a business entity, what is the permitted purpose of the business entity?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, it is anticipated that Signer may have access to learn Franchisor's Trade Secrets as Franchisee develops and maintains Franchisee's Business using DRYJECT SYSTEM.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
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- Franchisee may disclose to Signer some or all of Franchisor's Trade Secrets relating to DRYJECT SYSTEM.
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- Signer shall receive Franchisor's Trade Secrets in confidence, maintain them in confidence, and shall use them only in connection with the development and/or maintenance by Franchisee of the Franchised Business using DRYJECT SYSTEM for so long as Franchisee is licensed by Franchisor to use DRYJECT SYSTEM.
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- Except to the extent prohibited by the laws of the state where the Franchised Business is located, in order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
- (a) Directly or indirectly, for himself/herself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States; or
- (b) At any time, during the Term of this Agreement or thereafter, You shall not, either directly or indirectly, for You, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or other business entity, use, in connection with the operation of any business other than the Franchised Business, any of the Licensed Rights, or any other names, marks, systems, insignias, or symbols provided or approved by Us to You pursuant to this Agreement, or cause or permit any such business to look like, copy or imitate a DryJect Franchised Business or to be operated in a manner tending to have such effect.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 DryJect Franchise Disclosure Document, if a DryJect franchisee operates as a business entity, the entity is permitted to develop and maintain the DryJect franchised business using the DryJect system. The business entity can use DryJect's trade secrets only in connection with the development and maintenance of the franchised business, as long as the franchisee is licensed by DryJect.
The FDD also states that the business entity is restricted from engaging in any business that is the same as or similar to DryJect, or acquiring financial interest in such businesses. This restriction applies to any business located within the United States. The business entity is also prohibited from using DryJect's licensed rights, names, marks, systems, or symbols in connection with any business other than the franchised DryJect business.
These restrictions are in place to protect DryJect's trade secrets, goodwill, and the uniformity of the DryJect system. They also aim to prevent conflicts of interest and ensure that franchisees focus their efforts on growing their DryJect businesses. Prospective franchisees should carefully consider these restrictions and how they might impact their other business interests or future plans.