What are the requirements for a Dryject franchisee to renew or extend their franchise term?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) All monetary obligations owed by You to Us and any of Our subsidiaries and affiliates have been satisfied and paid when due throughout the initial and all prior renewal terms of this Agreement;
- (e) You execute Our then-current standard form of franchise agreement (with appropriate modifications to reflect that such agreement relates to the grant of a renewal franchise including application of Your prior years as a franchisee to the determination of the Annual Royalty Service Fee and Annual Minimum Service Fee) being executed by franchisees for new DryJect franchised businesses, which agreement shall supersede in all respects this Agreement and which may contain terms and conditions substantially different from those set forth in this Agreement, including, without limitation, a different royalty fee, different advertising expenditure requirements, and a smaller Designated Territory;
- (f) You, except to the extent prohibited by state law, execute a general release, in a form prescribed by Us, of any and all claims You may have against Us and Our subsidiaries and affiliates, and their respective officers, directors, shareholders, members, managers, agents and employees;
- (g) You, or a representative approved by Us or any other person who has an interest in You (if You are a group of individuals or a corporation, partnership, limited liability company, unincorporated association or similar entity) attend and satisfactorily complete such retraining or refresher training programs as We in Our sole discretion may require;
- (h) You perform such replacements and upgrading as We may require to cause the Franchised Business' equipment and computer system to conform to the specifications being used for new DryJect franchised businesses on the renewal date; and,
- (i) You pay to Us a Renewal Fee equal to twenty percent (20%) of the Initial Franchise Fee then being paid by new franchisees.
If You continue to operate after the end of the Term or any Renewal term without exercising an option to renew and signing Our then-current franchise agreement, You shall be deemed to be operating on a month-to-month basis under the terms and conditions of Our then-current form of franchise agreement. In such circumstances, and notwithstanding the foregoing, We may, on ten (10) days written notice, terminate Your Franchise Agreement.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 39–41)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, to renew a franchise agreement, a franchisee must meet several requirements. The franchisee must have satisfied all monetary obligations to Dryject and its subsidiaries. They must also execute Dryject's then-current standard franchise agreement, which may contain substantially different terms and conditions from the original agreement, including potentially different royalty fees, advertising expenditure requirements, and a smaller designated territory.
Additionally, the franchisee must execute a general release of any claims against Dryject and its affiliates, unless prohibited by state law. The franchisee, or an approved representative, may be required to attend and complete retraining or refresher training programs. They must also perform any replacements and upgrades necessary to ensure the franchised business's equipment and computer systems conform to the specifications for new Dryject franchises.
Finally, the franchisee must pay a renewal fee equal to twenty percent (20%) of the initial franchise fee then being paid by new franchisees. If a franchisee continues to operate after the term without renewing, they will operate on a month-to-month basis under Dryject's current franchise agreement terms, and Dryject can terminate the agreement with ten (10) days' written notice.
It is important to note that for franchises governed by Minnesota law, any release signed as a condition of renewal will not apply to claims under the Minnesota Franchise Act. Furthermore, Dryject must comply with Minnesota statutes regarding notice of termination and nonrenewal, as well as consent to transfer, which cannot be unreasonably withheld.