Is Dryject required to provide financial performance information in Item 19?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
The FTC Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets. If there is a reasonable basis for the information and the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet that you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting John Paddock, DryJect Management, LLC, 307 Lincoln Avenue, Hatboro, Pennsylvania 19040, Telephone 215-444- 0310, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD page 41)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject is not required to provide information about the actual or potential financial performance of its franchised or company-owned outlets. Item 19 clarifies that providing financial performance representations is optional for franchisors under the FTC Franchise Rule, as long as there is a reasonable basis for the information.
Dryject states explicitly that they do not make any representations about a franchisee's future financial performance, nor do they provide information on the past financial performance of company-owned or franchised outlets. Furthermore, Dryject does not authorize its employees or representatives to make such representations, either orally or in writing.
However, if a prospective franchisee is purchasing an existing Dryject outlet, Dryject may provide the actual records of that specific outlet. The document advises that if a potential franchisee receives any other financial performance information or projections of future income, they should report it to Dryject's management, the Federal Trade Commission, and the appropriate state regulatory agencies. This is a common practice in franchising, as franchisors often prefer to avoid potential liability from overly optimistic or unsubstantiated financial projections.