Can I operate a business that looks like a Dryject franchise after the agreement ends?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) At any time, during the Term of this Agreement or thereafter, You shall not, either directly or indirectly, for You, or through, on behalf of, or in conjunction with any person, persons, partnership, corporation or other business entity, use, in connection with the operation of any business other than the Franchised Business, any of the Licensed Rights, or any other names, marks, systems, insignias, or symbols provided or approved by Us to You pursuant to this Agreement, or cause or permit any such business to look like, copy or imitate a DryJect Franchised Business or to be operated in a manner tending to have such effect.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees are prohibited from operating a business that imitates a Dryject franchise at any time, including after the franchise agreement terminates. The agreement explicitly states that franchisees cannot use any of Dryject's licensed rights, names, marks, systems, insignias, or symbols in connection with any other business.
This restriction is designed to protect Dryject's brand identity and goodwill. The franchise agreement emphasizes that franchisees cannot operate a business that looks like, copies, or imitates a Dryject franchised business or is operated in a manner that would have such an effect. This prevents former franchisees from leveraging Dryject's established image and reputation to unfairly compete with the Dryject system.
The agreement also includes non-compete clauses that restrict franchisees from engaging in similar businesses within a 50-mile radius of other Dryject locations. These restrictions apply both during the term of the agreement and for a specified period after termination or expiration. However, the agreement acknowledges that franchisees possess general skills and abilities and that the enforcement of these covenants should not deprive them of their ability to earn a living.
It's important to note that the enforceability of these non-compete and imitation clauses can vary depending on state laws. The Dryject franchise agreement includes provisions for modifying these covenants to comply with applicable laws, ensuring that the restrictions are lawful and enforceable to the maximum extent permitted.