Can Dryject operate acquired businesses within or near a Dryject franchisee's Designated Territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) You also agree that we may purchase, merge, acquire, be acquired by or affiliate with an existing competitive or non-competitive franchise or non-franchise network, chain or any other business regardless of the location of that other business' facilities, and that following such activity we may operate, franchise or license those other businesses and/or facilities under any names or marks other than (while this Agreement is in effect) the Marks, regardless of the location of these businesses and/or facilities, which may be within the Designated Territory or immediately proximate to the Designated Territory.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject retains the right to purchase, merge, acquire, or affiliate with existing businesses, regardless of whether they are competitive or not. Following such an event, Dryject has the right to operate, franchise, or license these businesses under names and marks other than the Dryject Marks.
This clause is in effect while the Franchise Agreement is active. These acquired businesses and/or facilities can be operated regardless of their location, even if they are within or near a franchisee's Designated Territory. This means that Dryject could potentially operate a business that competes with a franchisee within or close to their designated area, provided it's under a different brand name.
This aspect of the agreement carries significant implications for prospective franchisees. While franchisees are granted a Designated Territory, Dryject reserves considerable latitude to expand its operations through acquisitions, potentially impacting the franchisee's market. It is important for potential franchisees to fully understand this clause and its possible effects on their business before investing in a Dryject franchise.