If the ownership interests in a DryJect franchisee business entity changes, when must an updated Addendum D be provided to DryJect?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (ix) In the event the ownership interests in You changes, You must provide an updated Addendum D to Us five (5) business days prior to the change and the new recipient(s) of an ownership interest in You must sign the Guaranty Agreement attached to this Agreement as Addendum C if they have a twenty percent (20%) or greater ownership interest in You;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to DryJect's 2025 Franchise Disclosure Document, if the ownership interests in a DryJect franchise business entity changes, the franchisee must provide an updated Addendum D to DryJect five business days prior to the change. This requirement ensures that DryJect is informed of any alterations in the ownership structure of its franchise businesses.
Furthermore, the new recipient(s) of an ownership interest must sign the Guaranty Agreement attached as Addendum C if they have a twenty percent (20%) or greater ownership interest in the business entity. This stipulation ensures that individuals with significant ownership stakes are personally bound by the obligations outlined in the Guaranty Agreement.
This requirement allows DryJect to maintain oversight and control over who is involved in the ownership of its franchises, which is a common practice in franchising to protect the brand and ensure consistent standards. It also allows DryJect to ensure that all owners with a significant stake in the franchise are bound by the necessary agreements.