What protection does Dryject receive from the franchisee if Dryject exercises its step-in rights?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) During a step-in period, We will maintain in a separate account, all Gross Revenues of the Franchised Business. From that account We will pay all expenses of the Franchised Business, which will include the Royalty Service Fee, all Marketing Fund contributions or payments, and reasonable compensation and expenses for Our representatives. If these step-in rights are exercised, You agree to hold Us harmless and hold harmless Our representatives for all actions or omissions which occur during the course of the temporary operation. You agree to pay Our reasonable attorneys' fees and costs which might arise from the exercise of these step-in rights. Nothing in this Section 33 will prevent Us from exercising any other rights which We may have under this Agreement, including the right to terminate the Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if Dryject exercises its step-in rights, the franchisee agrees to hold Dryject harmless. This means the franchisee will not hold Dryject liable for any actions or omissions that occur during the temporary operation of the franchise by Dryject. This protection extends to Dryject's representatives as well.
Furthermore, the franchisee is responsible for covering Dryject's reasonable attorney's fees and costs that may arise from the exercise of these step-in rights. This could include legal expenses incurred by Dryject in the process of taking over and operating the franchise temporarily.
It is important to note that Dryject's right to step in does not prevent them from exercising any other rights they may have under the agreement, including the right to terminate the agreement. This means that even if Dryject steps in to operate the franchise temporarily, they can still choose to terminate the franchise agreement if other breaches or issues arise.