Does Dryject need to consider a franchisee's particular economic circumstances when exercising Reasonable Business Judgment?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Your performance is of vital importance to the market position and Our overall image, and there are many subjective factors that comprise the process by which We select a suitable franchisee. Our consent to a transfer or assignment by You of the Franchise and Franchised Business shall, in addition to the other restrictions and requirements herein noted, remain a
subjective determination and shall consider, but not be limited to, whether:
(i) All obligations of Yours under this Agreement and all other franchise documents, and the relationship created under those agreements are being assumed by the transferee;
(ii) All ascertained debts of Yours to Us and Our affiliates have been paid;
(iii) You, at the time of the request to transfer and as of the date of transfer, are not in default under this Agreement or any other franchise agreement;
(iv) Except for other DryJect franchisees, the proposed transferee does not operate or participate in an entity that operates a franchise, license, or other business offering products and/or services similar to those offered by the Franchised Business;
(v) The proposed transferee meets all of Our requirements for new franchisees, including, but not limited to, good reputation and character, experience, business acumen, operational ability, financial strength and stability, willingness and ability to devote full time and best efforts to the operation of the Franchised Business and other business considerations as We may reasonably apply in evaluating new franchisees.
We must be provided all information about the proposed transferee as We may reasonably require;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, when Dryject considers a transfer of ownership, they will consider several factors. These factors include whether all of the franchisee's obligations are being assumed by the new owner, if all debts to Dryject and its affiliates have been paid, and if the franchisee is not in default of the agreement.
Dryject also considers if the potential new franchisee meets all the requirements for new franchisees. These requirements include having a good reputation and character, experience, business knowledge, operational skills, financial stability, and the ability to commit fully to running the Dryject franchise. Dryject also requires all information about the proposed new franchisee that they may reasonably ask for.
While Dryject does consider the financial strength and stability of a potential franchisee, the FDD does not state that Dryject needs to consider a franchisee's particular economic circumstances when exercising Reasonable Business Judgment.