How is the post-termination/expiration restriction period extended if the Signer violates the Dryject agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Should legal proceedings have to be brought by Franchisor against Trainee to enforce any Non-Competition Covenant or for Trainee's failure to maintain Confidentiality, the period of restriction shall be deemed to begin running on the date of entry of an order granting Franchisor preliminary injunctive relief and shall continue uninterrupted for the entire period of restriction.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the post-termination restriction period for the Signer (typically a spouse or domestic partner of the franchisee) can be extended if legal proceedings are initiated by Dryject to enforce non-competition or confidentiality covenants. Specifically, the restriction period is deemed to begin on the date a court order is issued granting Dryject preliminary injunctive relief. This ensures that the entire restriction period runs without interruption, even if the Signer's violation occurs near the end of the initial term.
This provision is designed to protect Dryject's trade secrets and goodwill by preventing individuals with knowledge of the Dryject system from competing unfairly. By tying the start of the restriction period to the granting of injunctive relief, Dryject aims to prevent a Signer from violating the agreement close to the end of the original restriction period, thereby undermining the purpose of the non-compete clause. This clause ensures that Dryject can fully enforce the non-compete agreement, safeguarding its business interests.
For a prospective Dryject franchisee, this clause highlights the importance of ensuring that their spouse or domestic partner fully understands and complies with the Spousal Non-Disclosure and Non-Competition Agreement. Violation by the Signer can lead to legal action and an extended period during which the Signer is restricted from engaging in competitive activities. This could have significant implications for the franchisee's family and financial situation. Franchisees should carefully review this agreement with their spouse or partner and seek legal counsel to fully understand its implications.
It is important to note that the Dryject agreement is governed by and construed under the laws of the Commonwealth of Pennsylvania. This means that any disputes related to the Spousal Non-Disclosure and Non-Competition Agreement will be subject to Pennsylvania law. Additionally, if any part of the agreement is deemed unenforceable, the provisions will be modified to the extent necessary to make them valid and enforceable to the greatest extent possible, ensuring that Dryject's interests are protected while adhering to legal standards.