What is the minimum ownership interest required for the Operating Principal of a DryJect franchisee business entity?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) If You are a business entity, You must appoint an individual owner as Your Operating Principal who must have authority over all business decisions related to Your Franchised Business and must have the power to bind You in all dealings with Us. Your Operating Principal must have at least a twenty percent (20%) ownership interest in Your business entity. You must provide Us with written notice of Your Operating Principal at least thirty (30) days prior to opening and may not change Your Operating Principal without Our prior written approval.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to DryJect's 2025 Franchise Disclosure Document, if the franchisee is a business entity, the Operating Principal must have at least a 20% ownership interest in the business. The Operating Principal is the individual owner appointed by the business entity who has the authority over all business decisions related to the DryJect Franchised Business and the power to bind the entity in all dealings with DryJect.
DryJect requires written notice of the Operating Principal at least 30 days before opening the franchise. Furthermore, the franchisee cannot change the Operating Principal without DryJect's prior written approval. This requirement ensures that DryJect has a consistent point of contact with sufficient authority to manage the franchise effectively.
This requirement is fairly standard in franchising, as franchisors typically want to ensure that someone with a significant stake in the business is actively managing the franchise and is accountable for its performance. The 20% minimum ownership interest aligns the Operating Principal's interests with those of the business and DryJect, promoting a commitment to the success of the franchise.