Can a party bring a claim related to a Dryject franchise agreement in court?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
As to any state law described in this Addenda that declares void or unenforceable any provision contained in the DryJect Management, LLC Franchise Agreement, DryJect Management, LLC reserves the right to challenge the constitutionality of the state law by bringing an appropriate legal action or raising the claim in a legal action or arbitration that you initiate.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor,
franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Item 17(v), "Choice of Forum", shall be amended by adding the following paragraph:
Section 4-216(c)(25) of the Maryland Franchise Registration and Disclosure Law requires a franchisor to file an irrevocable consent to be sued in Maryland. A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Any claims arising under the Maryland Franchise Registration and Disclosure law must be brought within three years after the franchise is granted.
Minn. Stat. Sec. 80C.,21 and Minn. Rules 2860.4400J prohibit DryJect from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the disclosure document or franchise agreement can abrogate or reduce any of Franchise Owner’s rights as provided for in Minnesota Statutes, Chapter 80C, or Franchise Owner’s rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, franchisees may have the ability to bring claims related to the franchise agreement in court, but this can depend on the specific state and the nature of the claim. For instance, the FDD includes addenda for Maryland and Minnesota that address legal rights. In Maryland, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and such claims must be brought within three years after the franchise is granted. In Minnesota, Dryject cannot require litigation to be conducted outside of Minnesota, require a waiver of a jury trial, or require the franchisee to consent to liquidated damages, termination penalties, or judgment notes.
Dryject also retains the right to challenge the constitutionality of state laws that declare any provision in the Dryject Management, LLC Franchise Agreement void or unenforceable. They can do so by initiating a legal action or raising the claim in a legal action or arbitration initiated by the franchisee. This indicates that while franchisees have certain protections and rights to bring claims, Dryject also reserves the right to defend its agreement through legal means.
Furthermore, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Dryject or its representatives. This provision is designed to protect franchisees from inadvertently giving up their legal rights during the initial stages of the franchise relationship. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.