Is Dryject obligated by the Franchise Agreement to protect the rights granted to franchisees to utilize the System and its patented equipment?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not obligated by the Franchise Agreement, or otherwise obligated, to protect any or all rights granted to you to utilize the System and its patented equipment, or to protect you against claims of infringement with respect to the patents. However, we believe that our patents are important to the Franchised Business and intend to exercise our best efforts to protect them. We are not aware of any actions that infringe upon our patents that could materially affect your use. If litigation involving the Patents is instituted or threatened against you, you must notify us promptly and cooperate fully with us in defending or settling the litigation. Should we elect to protect the Patents or protect you against claims of infringement, we will have the right to control any
litigation involving a patent licensed by us to you.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–37)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject is not obligated by the Franchise Agreement to protect the rights granted to franchisees to utilize the System and its patented equipment. However, Dryject states that it believes its patents are important to the Franchised Business and intends to exercise its best efforts to protect them. Dryject also states that it is not aware of any actions that infringe upon their patents that could materially affect a franchisee's use.
If litigation involving the patents is instituted or threatened against a franchisee, the franchisee must notify Dryject promptly and cooperate fully with Dryject in defending or settling the litigation. Should Dryject elect to protect the patents or protect a franchisee against claims of infringement, Dryject will have the right to control any litigation involving a patent licensed by them to the franchisee.
This means that while Dryject intends to protect its patents, the franchisee bears some responsibility in the event of infringement claims. The franchisee is required to notify Dryject promptly and cooperate fully in any litigation. Ultimately, Dryject reserves the right to control any litigation involving its patents. This is a fairly typical arrangement in franchising, where the franchisor owns the intellectual property but the franchisee must assist in its defense.