If legal proceedings are brought against a Dryject franchisee for violating a non-competition covenant, when does the restriction period begin?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Should legal proceedings have to be brought by Franchisor against Trainee to enforce any Non-Competition Covenant or for Trainee's failure to maintain Confidentiality, the period of restriction shall be deemed to begin running on the date of entry of an order granting Franchisor preliminary injunctive relief and shall continue uninterrupted for the entire period of restriction.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, if Dryject brings legal proceedings against a franchisee to enforce a non-competition covenant, the restriction period begins on the date a court order is issued granting Dryject preliminary injunctive relief. The restriction period then continues uninterrupted for the entire duration specified in the non-competition agreement.
This means that the non-compete clock doesn't start ticking simply when a franchisee breaches the agreement. Dryject must take legal action and win a preliminary injunction. This provides some assurance to the franchisee that the non-compete will only be enforced if Dryject can demonstrate a likely violation and potential harm.
It is important for prospective franchisees to understand the specific terms of the non-competition covenant, including its duration and geographic scope, as outlined elsewhere in the Franchise Agreement. Franchisees should also be aware of the circumstances under which Dryject might seek to enforce the covenant and the potential legal costs involved in defending against such an action.