Which items in the Dryject Disclosure Document relate to pre-opening purchases/leases?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
equiring you to sign a general release of claims as part of a settlement of a dispute.
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR STATE OF MARYLAND
The Franchise Disclosure Document for DryJect Management, LLC offering franchises under the "DryJect®" mark for use in the State of Maryland shall be amended as follows:
Item 5, "Initial Fee" shall be amended by the addition of the following paragraph:
Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 25–26)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, Item 5, "Initial Fee," is directly related to pre-opening obligations. In Maryland and Minnesota, addenda to the FDD state that all initial fees and payments are deferred until Dryject completes its pre-opening obligations under the franchise agreement and the franchise is open for business. This means franchisees in these states do not have to pay the initial franchise fee until Dryject has fulfilled its responsibilities to help them get started.
This deferral of fees protects new Dryject franchisees by ensuring that they only pay the initial fee after the franchisor has provided the agreed-upon pre-opening support. This can significantly reduce the financial risk for franchisees, as they are not investing heavily upfront before the business is ready to operate. It also aligns the franchisor's interests with the franchisee's success, as Dryject is incentivized to provide effective pre-opening assistance to trigger the fee payment.
It is important for prospective Dryject franchisees to carefully review Item 5 and any state-specific addenda to understand the exact conditions under which initial fees are deferred. They should also confirm with Dryject what specific activities constitute the fulfillment of pre-opening obligations. This will help ensure a clear understanding of when the initial fee becomes due and payable.