Can Dryject purchase or merge with a competitive franchise network?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) You also agree that we may purchase, merge, acquire, be acquired by or affiliate with an existing competitive or non-competitive franchise or non-franchise network, chain or any other business regardless of the location of that other business' facilities, and that following such activity we may operate, franchise or license those other businesses and/or facilities under any names or marks other than (while this Agreement is in effect) the Marks, regardless of the location of these businesses and/or facilities, which may be within the Designated Territory or immediately proximate to the Designated Territory.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject retains the right to purchase, merge, acquire, or be acquired by any competitive or non-competitive franchise or non-franchise network. Following such an event, Dryject has the right to operate, franchise, or license these other businesses under different names or marks, as long as they are not the Dryject marks, even if these businesses are within or near a franchisee's designated territory.
This clause in the franchise agreement means that a Dryject franchisee's territory could potentially have a competing business introduced by Dryject itself. This could impact the franchisee's market share and revenue. The franchisee agreement stipulates that this can occur regardless of the location of the other business's facilities.
It is important for a prospective franchisee to understand that Dryject maintains the flexibility to expand its business through acquisitions or mergers, even if those new ventures compete directly with existing franchisees. This is a fairly common clause in franchise agreements, as it allows the franchisor to grow and adapt to market changes. However, franchisees should carefully consider the potential impact on their business before investing in a Dryject franchise.