What post-termination covenants must a transferring Dryject franchisee abide by?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(xi) You will abide by all post-termination covenants including, without limitation, the covenant not to compete set forth in Section 25, subject to applicable state law, and confidentiality set forth in Section 26.
(v) To cease immediately to hold Yourself out in any way as Our franchisee or to do anything that would indicate any past or present relationship between You and Us;
(vi) To the extent possible, to immediately remove or permanently cover any and all structures, signs or advertisements identifiable in any way with Us or the DryJect name or image;
(vii) To promptly take such action that may be required to cancel all fictitious or assumed names or equivalent registrations relating to Your use of any of the Marks or, at Our option, assign same to Us;
(viii) Promptly assign to Us any interest that You may have in the telephone number(s), telephone listing(s) and/or directory(ies), social media and networking accounts, and/or Internet numbers used by You in connection with the operation of the Franchised Business.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, a transferring franchisee must adhere to all post-termination covenants, including the covenant not to compete as detailed in Section 25 and the confidentiality requirements outlined in Section 26. These obligations remain in effect subject to applicable state law. This means that even after transferring the franchise, the franchisee is still bound by the terms preventing competition with Dryject and protecting confidential information.
Specifically, the franchisee must cease representing themselves as a Dryject franchisee and avoid any actions suggesting a past or present relationship with Dryject. They must also remove or cover any structures, signs, or advertisements that identify with Dryject's name or image. Additionally, the franchisee is required to cancel any assumed names registrations related to the use of Dryject's marks or assign them to Dryject, and transfer any interest in telephone numbers, listings, social media accounts, and internet numbers used for the franchise business to Dryject.
These post-termination covenants are designed to protect Dryject's brand, trade secrets, and customer relationships. For a prospective franchisee, this means understanding that transferring the franchise does not release them from certain ongoing obligations. It is essential to carefully review Sections 25 and 26 of the franchise agreement to fully understand the scope and duration of these post-termination restrictions. Failure to comply with these covenants could result in legal action by Dryject.