Is Dryject liable for damages arising out of the operation of a Dryject franchisee's business?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
DRYJECT MANAGEMENT, LLC will protect your right to use the DryJect® Mark and Trade Name or will indemnify you against any loss, costs, or expenses arising out of any claim, suit, or demand regarding your use of the Marks or Trade Name.
- Item 17, summary column for (c) is amended to add the following:
Any release signed as a condition of renewal will not apply to any claims you may have under the Minnesota Franchise Act.
- Item 17, summary column for (f) is amended to add the following:
With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, subds. 3, 4 and 5 which require, except in certain specified cases, that you be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal of the franchise agreement and that consent to transfer of the franchise will not be unreasonably withheld.
- Item 17, summary column for (m) is amended to add the following:
Any release signed as a condition of transfer will not apply to any claims you may have under the Minnesota Franchise Act.
- Item 17, summary columns for (v) and (w) are amended to add the following:
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in this Disclosure Document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statues, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Minn. Stat. 80C.17, subdivision 5 prohibits any action commencing section more than three years after the cause of action accrues.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, Dryject Management, LLC will protect the franchisee's right to use the Dryject mark and trade name. Dryject will indemnify the franchisee against any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the marks or trade name. This indicates that Dryject assumes responsibility for certain liabilities related to the franchisee's use of Dryject's intellectual property. However, this indemnity is specifically tied to the use of Dryject's trademarks and trade names, and may not extend to other liabilities arising from the franchisee's business operations.
Additionally, the FDD states that Dryject will have no liability with respect to its obligations under the agreement or otherwise for consequential, exemplary, special, incidental, or punitive damages, even if Dryject has been advised of the possibility of such damages. This clause limits Dryject's liability for certain types of damages, potentially shifting some risk to the franchisee.
Furthermore, the FDD includes provisions related to Minnesota law, which prohibit Dryject from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. These provisions aim to protect the franchisee's rights and remedies under the law. It is important for a prospective franchisee to consult with a legal professional to fully understand the scope of Dryject's liability and the franchisee's potential exposure to damages arising from their business operations.