Can an individual Dryject franchisee transfer the agreement to a business entity they formed?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
t in this Agreement to any person or legal entity who in Our good faith judgment has the willingness and capacity to assume Our obligations.
- (g) Notwithstanding the provisions of Subsection (c) above, if You are an individual, You may request to transfer this Agreement to a business entity formed by You after the effective date of this Agreement in which You are the sole owner. Our consent will not be unreaso
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, an individual franchisee can request to transfer the franchise agreement to a business entity they formed after the agreement's effective date, provided they are the sole owner of the new entity. Dryject's consent to this type of transfer will not be unreasonably withheld.
However, the franchisee must pay Dryject a non-refundable transfer fee of $500 to cover the costs associated with processing the transfer. This fee is intended to compensate Dryject for the administrative work involved in reviewing and documenting the proposed transfer.
This provision offers flexibility for franchisees who initially sign the agreement as individuals but later decide to operate under a business entity for liability or tax purposes. It's important to note that while Dryject's consent won't be unreasonably withheld, franchisees should still ensure they meet all other requirements and provide necessary documentation to facilitate a smooth transfer process. Franchisees should carefully consider the implications of such a transfer and consult with legal and financial advisors to ensure it aligns with their business goals.