Does Dryject have an option to purchase a Dryject franchisee's business upon termination or non-renewal?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
accrue exclusively to Our benefit. Upon the expiration or termination of this Agreement and any renewals, no monetary amount shall be attributable to goodwill associated with Your use of the Licensed Rights.
(c) Except as provided for in Section 4 of this Agreement above, the Franchised Business and Licensed Rights granted under this Agreement are non-exclusive, and We retain the right, in Our sole discretion:
(i) To continue to operate DryJect businesses and to use the Licensed Rights in any territory outside of Your Designated Territory, and to license others to do so; and,
(ii) To develop, use and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignias or copyrights not specifically designated by Us as Licensed Rights, for use with similar or different franchise systems in any territory, on such terms and conditions as We may deem advisable, and without granting You any rights.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 39–41)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, the agreement states that upon expiration or termination of the agreement, no monetary amount shall be attributable to goodwill associated with the franchisee's use of the licensed rights. This suggests that Dryject does not assign monetary value to the goodwill a franchisee builds during the term of their agreement. This means that Dryject is not obligated to compensate a franchisee for the goodwill if Dryject does not renew the franchise agreement or terminates it.
However, the Wisconsin Fair Dealership Law may supersede some provisions of the franchise agreement. Specifically, if the termination provisions in the agreement regarding the repurchase of inventory are inconsistent with Wisconsin law, the law's requirements will take precedence. According to the law, if Dryject chooses to repurchase inventory from a franchisee, they must pay fair market value for all merchandise bearing the Dryject trademark. This applies specifically to Wisconsin franchisees, and similar state laws may exist in other states that could affect the terms of the franchise agreement.
Prospective franchisees should be aware that the franchise agreement is subject to modifications based on state-specific laws. Franchisees should consult with legal counsel to understand how these state laws may affect their rights upon termination or non-renewal, particularly regarding the potential repurchase of inventory and compensation for goodwill. It is important to note that Dryject reserves the right to challenge the constitutionality of any state law that declares void or unenforceable any provision contained in the Dryject Management, LLC Franchise Agreement.