Does Dryject require approval for a franchisee to transfer their franchise?
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.
We must be provided all information about the proposed transferee as We may reasonably require;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 39–41)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject requires written consent to transfer a franchise. The document states that any assignment or transfer is not effective until Dryject receives a fully executed copy of all transfer documents and provides written consent. This requirement ensures that Dryject maintains control over who enters their franchise system.
Dryject's consent to a transfer is a subjective determination, considering several factors. These factors 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 of any agreements. Additionally, the proposed transferee should not operate a similar business (with the exception of other Dryject franchisees) and must meet all of Dryject's requirements for new franchisees, such as good reputation, experience, financial stability, and the willingness to devote full time and effort to the business.
This level of scrutiny is typical in franchising, as franchisors want to ensure that new franchisees are well-qualified to maintain brand standards and contribute positively to the system. The FDD also states that Dryject must be provided with all information about the proposed transferee as they may reasonably require. This allows Dryject to thoroughly assess the transferee's suitability before granting approval. For franchisees in Minnesota, consent to transfer of the franchise will not be unreasonably withheld.