Does Dryject require consent for a transfer that occurs by operation of law?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (viii) You shall not issue any additional stock, membership, or interests in You and no individual with ownership interest in You shall transfer, assign or pledge any ownership interest in You without Our prior written consent, which shall not be unreasonably withheld, and a legend setting forth such restriction on transfers shall be contained in the business entity's organizational and governing documents and other appropriate documents such as certificates and stocks. In giving Our consent, We shall have the right
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, Dryject requires written consent for any transfer of the franchise. This requirement extends to transfers that occur through operation of law.
Dryject emphasizes that restrictions on transfer are necessary to protect the franchise system, trade secrets, operating procedures, reputation, and the interests of other franchisees. The franchisor retains the right to evaluate potential transferees based on subjective criteria, ensuring they meet the standards for new franchisees. This includes assessing their reputation, character, experience, business acumen, operational ability, and financial stability.
For a prospective Dryject franchisee, this means that any transfer of the franchise, whether voluntary or involuntary (such as through inheritance or court order), is subject to Dryject's approval. The franchisee must provide all required information about the proposed transferee, and Dryject will assess whether the transferee meets the then-current requirements for new franchisees. This consent process allows Dryject to maintain control over who operates franchises within its system, safeguarding brand consistency and quality. Franchisees should be aware that obtaining consent is not guaranteed and depends on the transferee's qualifications and acceptance by Dryject.