If Dryject steps in, what happens to the gross revenues of the Dryject franchised business?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) If a material default under this Agreement occurs and remains uncured, or is not subject to cure, or if Your actions jeopardize the integrity of the Marks or System, then You authorize Us or Our designee to operate the Franchised Business for as long as, in Our reasonable judgment, it is necessary or practical. You acknowledge that this right to step-in is necessary to preserve the value and integrity of the Marks and System. Even if We exercise this right to step in, You agree that We do not lose or waive a right to exercise any other rights or remedies which We may have legally under this Agreement. Among the reasons We may act under these step-in rights are:
- (i) We reasonably determine that You are unable to operate the Franchised Business because You are absent or incapacitated because of illness, accident, injury or death;
- (ii) You have not paid Your monetary obligations to Us or others when they are due;
- (iii) You have not removed non-consensual liens or encumbrances which have been placed against the Franchised Business; or,
- (iv) We determine that material operational problems require that We operate the Franchised Business for a period of time.
- (b) During a step-in period, We will maintain in a separate account, all Gross Revenues of the Franchised Business. From that account We will pay all expenses of the Franchised Business, which will include the Royalty Service Fee, all Marketing Fund contributions or payments, and reasonable compensation and expenses for Our representatives. If these step-in rights are exercised, You agree to hold Us harmless and hold harmless Our representatives for all actions or omissions which occur during the course of the temporary operation. You agree to pay Our reasonable attorneys' fees and costs which might arise from the exercise of these step-in rights. Nothing in this Section 33 will prevent Us from exercising any other rig
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if Dryject exercises its step-in rights due to a franchisee's default or actions that jeopardize the brand, Dryject will manage the franchised business for a period deemed necessary. During this period, Dryject will maintain all gross revenues of the business in a separate account.
From this account, Dryject will pay all the expenses of the franchised business. These expenses include the Royalty Service Fee, all Marketing Fund contributions or payments, and reasonable compensation and expenses for Dryject's representatives.
The franchisee is responsible for holding Dryject and its representatives harmless for any actions or omissions that occur during this temporary operation. The franchisee also agrees to pay Dryject's reasonable attorneys' fees and costs arising from the exercise of these step-in rights. This step-in right does not prevent Dryject from exercising any other legal rights or remedies available under the Franchise Agreement.