What are the obligations of the spouse under the Dryject Spousal Non-Disclosure and Non-Competition Agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, it is anticipated that Signer may have access to learn Franchisor's Trade Secrets as Franchisee develops and maintains Franchisee's Business using DRYJECT SYSTEM.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
-
- Franchisee may disclose to Signer some or all of Franchisor's Trade Secrets relating to DRYJECT SYSTEM.
-
- Signer shall receive Franchisor's Trade Secrets in confidence, maintain them in confidence, and shall use them only in connection with the development and/or maintenance by Franchisee of the Franchised Business using DRYJECT SYSTEM for so long as Franchisee is licensed by Franchisor to use DRYJECT SYSTEM.
-
- Signer shall not at any time make copies of any documents or compilations containing some or all of Franchisor's Trade Secrets without the express written permission of Franchisor.
-
- Signer shall not disclose or permit the disclosure of Franchisor's Trade Secrets to anyone.
-
- That all information and materials, including without limitation, specifications, techniques and compilations of data which Franchisor shall designate as confidential shall be deemed Franchisor's Trade Secrets for the purposes of this Agreement.
-
- Signer shall not, directly or indirectly, do any act or omit to do any act, which would or would likely to be injurious or prejudicial to the goodwill associated with DRYJECT SYSTEM.
-
- Except to the extent prohibited by the laws of the state where the Franchised Business is located, in order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
- (a) Directly or indirectly, for himself/herself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States; or
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, a spouse or domestic partner of a Dryject franchisee owner is required to sign a Spousal Non-Disclosure and Non-Competition Agreement. This agreement ensures the spouse will maintain the confidentiality of Dryject's trade secrets and will not engage in activities that could harm the Dryject system's goodwill.
The spouse, referred to as the "Signer" in the agreement, must receive Dryject's trade secrets in confidence and use them only in connection with the development and maintenance of the franchised business. The Signer is prohibited from making copies of any documents containing Dryject's trade secrets without express written permission from Dryject. They also cannot disclose Dryject's trade secrets to anyone.
Specifically, the spouse cannot perform any action that would be harmful to the goodwill associated with the Dryject system. For the duration of the franchise agreement and for two years after its termination or expiration, the spouse is prohibited from engaging in or acquiring any financial interest in businesses that are the same as or similar to Dryject within the United States. This restriction applies to direct or indirect involvement, including advising, helping, or making loans to such entities.
These obligations are designed to protect Dryject's confidential information and market position. Prospective franchisees should carefully review Exhibit F, the Spousal Non-Disclosure and Non-Competition Agreement, and understand its implications for their spouse or domestic partner. It is important to note that the enforceability of non-compete agreements can vary by state, so franchisees should seek professional legal advice to ensure compliance with local laws.