What is Dryject's reasoning for requiring consent to a transfer or assignment?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) You acknowledge and agree that the restrictions on transfer imposed herein are reasonable and are necessary to protect Our Franchise System; Our trade secrets and operating procedures; Our general high reputation and image; the Licensed Rights; as well as You and Our other DryJect franchisees. Any assignment or transfer permitted by this Agreement shall not be effective until We receive a completely executed copy of all transfer documents and consent to such transfer in writing. Under no circumstances will You have a right to transfer under this Agreement before the Franchised Business has commenced operations.
- (d) Your performance is of vital importance to the market position and Our overall image, and there are many subjective factors that comprise the process by which We select a suitable franchisee. Our consent to a transfer or assignment by You of the Franchise and Franchised Business shall, in addition to the other restrictions and requirements herein noted, remain a
subjective determination and shall consider, but not be limited to, whether:
(i) All obligations of Yours under this Agreement and all other franchise documents, and the relationship created under those agreements are being assumed by the transferee;
(ii) All ascertained debts of Yours to Us and Our affiliates have been paid;
(iii) You, at the time of the request to transfer and as of the date of transfer, are not in default under this Agreement or any other franchise agreement;
(iv) Except for other DryJect franchisees, the proposed transferee does not operate or participate in an entity that operates a franchise, license, or other business offering products and/or services similar to those offered by the Franchised Business;
(v) The proposed transferee meets all of Our requirements for new franchisees, including, but not limited to, good reputation and character, experience, business acumen, operational ability, financial strength and stability, willingness and ability to devote full time and best efforts to the operation of the Franchised Business and other business considerations as We may reasonably apply in evaluating new franchisees.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject requires consent to a transfer or assignment of the franchise agreement to protect its franchise system, trade secrets, operating procedures, general reputation and image, and the licensed rights, as well as the franchisee and other Dryject franchisees. Dryject considers the franchisee's performance vital to its market position and overall image, and the selection of a suitable franchisee involves many subjective factors.
Dryject's consent to a transfer or assignment is a subjective determination that considers several factors. These include whether the transferee assumes all obligations under the franchise agreement, all debts to Dryject and its affiliates are paid, and the franchisee is not in default. The proposed transferee cannot operate a similar business (except for other Dryject franchisees) and must meet all of Dryject's requirements for new franchisees. These requirements include good reputation and character, experience, business acumen, operational ability, and financial strength and stability. The transferee must also be willing and able to devote full time and best efforts to the operation of the franchised business.
In practice, this means that a Dryject franchisee cannot simply sell or transfer their franchise to anyone. Dryject retains significant control over who can become a franchisee to maintain brand standards and protect the overall network. A prospective franchisee looking to sell their Dryject business needs to find a buyer who meets Dryject's criteria and obtain Dryject's approval, which is not guaranteed. This is a common practice in franchising, as franchisors want to ensure that new franchisees are qualified and will uphold the brand's standards.