factual

What is the initial step required before seeking judicial resolution of a dispute related to a Dryject franchise?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (a) We and You agree that it is in each of our best interests to resolve claims, controversies and disputes arising out of or relating to Your operation of the Franchised Business under this Agreement between us in an orderly fashion and in a consistent manner. For that reason, We and You agree as follows:
    • (i) Except for matters where either party seeks equitable relief, neither party will seek a judicial resolution of a dispute between them without first requesting a meeting or telephone conference with the other party by written notice, which notice will designate a party who is a senior executive with authority to reach a resolution of the dispute on their behalf. The party receiving the notice will also designate a representative of similar authority for the purpose of discussing the specific matter in dispute. If You are an individual, You will be Your designated representative. At least one meeting or telephone

conference of the designated representatives will be held in an effort to resolve the dispute. The parties will agree on a location, date and time for the meeting or telephone conference which must be within thirty (30) days of the initial notice. If the meeting(s) and/or telephone conferences do not resolve the dispute, either party may pursue mediation in accordance with Subsection 37(a)(ii).

Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, before seeking judicial resolution of a dispute, both Dryject and the franchisee must first request a meeting or telephone conference. This request must be made via written notice, designating a senior executive with the authority to resolve the dispute on their behalf. If the franchisee is an individual, they will serve as their own designated representative.

The purpose of this initial meeting or telephone conference is to attempt to resolve the dispute amicably. The meeting's location, date, and time must be agreed upon by both parties and occur within thirty days of the initial written notice. This step is mandatory, except in cases where either party is seeking equitable relief, such as an injunction.

If the initial meeting or telephone conference does not lead to a resolution, either party may then pursue mediation. This mediation must be conducted with a mediator experienced in franchise law and follow the Commercial Arbitration Rules and Mediation Procedures of the American Arbitration Association (AAA), unless both parties agree to waive mediation and proceed directly to arbitration. This structured approach aims to facilitate resolution before resorting to more formal and costly legal proceedings.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.