How long does the Dryject Guaranty Agreement remain in effect?

According to Dryject's 2025 Franchise Disclosure Document, the Guaranty Agreement remains in effect during the term of the Franchise Agreement. It also remains in effect after the termination or expiration of the Franchise Agreement, if required by the Franchise Agreement. The obligations of the Guarantor are effective on the effective date of the Franchise Agreement, regardless of the actual date of signature.

This means that individuals with a significant ownership stake (20% or greater) in a franchisee business entity are bound by the Guaranty Agreement for the entire duration of the franchise term. This obligation extends beyond the initial term if the Franchise Agreement requires it, even after termination or expiration. The guarantor's obligations begin as soon as the Franchise Agreement becomes effective, irrespective of when the Guaranty Agreement is signed.

For a prospective Dryject franchisee, this highlights the importance of understanding the full term and potential post-term obligations outlined in the Franchise Agreement. Any individual signing a Guaranty Agreement should carefully review the terms of the Franchise Agreement to fully understand the duration and scope of their financial responsibilities. This is a standard practice in franchising, as franchisors seek to ensure financial stability and commitment from key stakeholders.