What is Dryject's policy on a franchisee accepting business resulting from referrals or unsolicited inquiries from customers outside their Designated Territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not solicit or accept customers from outside of your Designated Territory without our prior written approval. You may solicit and accept customers only from companies or persons located within your Designated Territory. You may not solicit or accept customers from outside of your Designated Territory by using other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing, to make sales outside of your Designated Territory without our prior written approval. If you accept customers or business from outside your Designated Territory, which customer or business is located in another Franchise Owner's designated territory, then we have the right to require you to send all of your Gross Revenues you earned in that designated territory to the Franchise Owner who operates within the designated territory where the customer is located. However, you may accept business resulting from referrals or unsolicited inquiries from customers outside your Designated Territory if they are not in another Franchise Owner's designated territory.
Source: Item 12 — TERRITORY (FDD pages 33–34)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, franchisees can accept business resulting from referrals or unsolicited inquiries from customers outside their Designated Territory, provided those customers are not located within another Dryject franchisee's designated territory. However, franchisees must obtain prior written approval from Dryject to solicit or accept any customers from outside their Designated Territory. This includes using channels like the Internet, catalog sales, or telemarketing to make sales outside of their territory.
If a Dryject franchisee accepts business from outside their Designated Territory that is located within another franchisee's territory, Dryject has the right to require the franchisee to remit all gross revenues earned from that business to the franchisee in whose territory the customer is located. This policy aims to protect the market areas of individual franchisees and prevent conflicts over customers.
This policy has important implications for prospective Dryject franchisees. While franchisees have some flexibility to serve customers outside their primary territory through referrals and unsolicited inquiries, they must be careful not to encroach on other franchisees' territories. Obtaining written approval before actively soliciting customers outside the designated area is essential. The potential loss of revenue from inadvertently serving customers in another franchisee's territory highlights the importance of understanding and adhering to Dryject's territorial policies.