If the ownership interests in a DryJect franchisee business entity changes, what must the new recipient(s) of an ownership interest sign if they meet a certain threshold?

According to Dryject's 2025 Franchise Disclosure Document, if the ownership interests in a DryJect franchise changes, the franchisee must provide an updated Addendum D to Dryject five business days prior to the change. Furthermore, any new recipient of an ownership interest of 20% or greater must sign the Guaranty Agreement, which is attached to the franchise agreement as Addendum C.

This requirement ensures that Dryject maintains control over who is financially responsible for the franchise's obligations. The Guaranty Agreement makes the individual personally liable for the franchise's debts and performance, providing Dryject with an additional layer of security. This is a common practice in franchising, as franchisors want to ensure that franchisees are fully committed to the business and are willing to stand behind its financial obligations.

For a prospective Dryject franchisee, this means that if you plan to bring in partners or investors with a significant ownership stake (20% or more), those individuals will need to sign the Guaranty Agreement. This is a serious commitment, as it puts their personal assets at risk. Therefore, it's crucial to carefully consider the implications before making any changes to the ownership structure of your Dryject franchise.