If the DryJect franchisee is a business entity, what is required of individuals with a 20% or greater ownership interest in the DryJect franchise?
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;
- (iii) The execution of and transactions contemplated by this Agreement are within Your powers;
- (iv) The ownership interests in You are accurately and fully listed in Addendum D;
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, there are several requirements for individuals with a 20% or greater ownership interest. First, each individual with a 20% or greater ownership interest must sign the Guaranty Agreement attached to the Franchise Agreement as Addendum C, and the original signed Guaranty Agreement must be provided to DryJect. This agreement likely holds the individual personally liable for the business entity's obligations under the franchise agreement.
Second, each shareholder or member must execute and deliver the Confidentiality and Non-Competition Agreement as outlined in the Operations Manual, and a copy must be provided to DryJect. This agreement restricts these individuals from disclosing confidential information or competing with DryJect, protecting DryJect's trade secrets and market position.
Finally, DryJect has the option to require each person who owns or directly controls a twenty percent (20%) or more interest in the franchisee entity to attend and satisfactorily complete any additional training programs that may be established by DryJect in the future. These requirements ensure that individuals with significant ownership in a DryJect franchise are committed to the brand, understand their obligations, and are properly trained to uphold DryJect's standards.