Can DryJect impose conditions when consenting to a transfer of ownership interests in a DryJect franchisee business entity?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (viii) You shall not issue any additional stock, membership, or interests in You and no individual with ownership interest in You shall transfer, assign or pledge any ownership interest in You without Our prior written consent, which shall not be unreasonably withheld, and a legend setting forth such restriction on transfers shall be contained in the business entity's organizational and governing documents and other appropriate documents such as certificates and stocks. In giving Our consent, We shall have the right
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 DryJect Franchise Disclosure Document, DryJect has the right to impose conditions when consenting to a transfer of ownership interests in a franchisee's business entity. Specifically, if the franchisee is a business entity, the FDD states that no individual with ownership interest in the entity can transfer, assign, or pledge any ownership interest without DryJect's prior written consent. This consent cannot be unreasonably withheld.
DryJect retains the right to give consent to the transfer of ownership interests in a DryJect franchise. The FDD specifies that DryJect has the right to include a legend in the business entity's organizational documents that sets forth restrictions on transfers.
This condition protects DryJect by ensuring they have control over who becomes involved in their franchise system. It allows them to maintain standards and protect their brand by carefully vetting potential new owners. A prospective franchisee should carefully consider these restrictions and discuss with DryJect what specific conditions might be imposed during a transfer scenario.