factual

In Maryland, until what event are all initial fees and payments owed by Dryject franchisees deferred?

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

Based upon the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance. Therefore, all initial fees and payments owed by franchisees shall be deferred until the franchisor completes its pre-opening obligations under the franchise agreement.

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

What This Means (2025 FDD)

According to Dryject's 2025 Franchise Disclosure Document, a Maryland addendum addresses the deferral of initial fees and payments. Due to the franchisor's financial condition, the Maryland Securities Commissioner requires a financial assurance. As a result, all initial fees and payments owed by Dryject franchisees in Maryland are deferred until Dryject completes its pre-opening obligations under the franchise agreement.

This deferral provides a significant benefit to new Dryject franchisees in Maryland. It reduces the upfront financial burden, allowing them to conserve capital during the initial setup phase of their business. This arrangement also offers a degree of security, as franchisees are not required to pay initial fees until Dryject has fulfilled its obligations to help them get started.

Prospective Dryject franchisees in Maryland should carefully review the franchise agreement and related addenda to fully understand the scope of Dryject's pre-opening obligations. They should also confirm with Dryject exactly what constitutes completion of these obligations, as this will trigger the requirement to pay the initial fees. This deferral is specific to Maryland and is based on the franchisor's financial condition as assessed by the Maryland Securities Commissioner.

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.