Does Dryject require written consent for any transfer of the franchise agreement?
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 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, Dryject requires written consent for any transfer of the franchise agreement. The FDD states that any assignment or transfer permitted by the agreement is not effective until Dryject receives a completely executed copy of all transfer documents and consents to the transfer in writing. This means that a franchisee cannot transfer their franchise to someone else without Dryject's explicit approval.
Dryject also outlines several conditions that it will consider when deciding whether to approve a transfer. These include ensuring that the transferee assumes all of the franchisee's obligations, that all debts to Dryject and its affiliates are paid, and that the franchisee is not in default of the agreement. Dryject also assesses whether the proposed transferee meets the requirements for new franchisees, such as having a good reputation, business acumen, financial stability, and the ability to devote full time and effort to the business.
Dryject emphasizes that its consent to a transfer is a subjective determination, meaning that it has broad discretion in deciding whether to approve a transfer. This is a common practice in franchising, as franchisors want to ensure that any new franchisee is a good fit for the system and will maintain its standards. However, in Minnesota, consent to transfer of the franchise will not be unreasonably withheld.
For a prospective Dryject franchisee, this means that selling their franchise is not guaranteed. They must find a buyer who meets Dryject's criteria and obtain Dryject's written consent. This process can take time and effort, and there is always a risk that Dryject will not approve the transfer. Franchisees should carefully consider these factors before deciding to invest in a Dryject franchise.