What requirements must a proposed Dryject transferee meet?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(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;
(vi) We shall have the right to approve the material terms and conditions of the transfer, including, without limitation, the right to confirm that the price and terms of payment are not so burdensome as to affect adversely the transferee's operation of the Franchised Business;
(vii) The proposed transferee executes or, in appropriate circumstances, causes all necessary parties to execute Our then-current standard form of franchise agreement (provided that such execution will not serve to extend the then remaining Term of the franchise) and such other then-current ancillary agreements being required by Us of new franchisees on the date of transfer;
(viii) You, except to the extent prohibited by applicable law, have executed a general release of any and all claims against Us and Our subsidiaries and affiliates, and Our respective officers, directors, agents and employees;
(ix) You have paid to Us a non-refundable Transfer Fee equal to forty percent (40%) of the then-current Initial Franchise Fee being charged to new franchisees to cover Our reasonable costs in effecting the transfer;
(x) If You are providing financing to the proposed transferee for any part of the purchase price, You have agreed that all of the proposed transferee's obligations under promissory notes, agreements or security interests reserved in the Franchised Business are subordinate to the proposed transferee's obligation to pay fees and other amounts due to Us and otherwise to comply with the franchise agreement; and,
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee wishing to transfer their franchise must meet several requirements related to the transferee. Dryject maintains a stop transfer order on securities except for transfers permitted within the franchise agreement. The transfer is not effective until Dryject receives all transfer documents and consents to the transfer in writing, and no transfer is allowed before the franchised business commences operations. Dryject's consent remains a subjective determination.
The proposed transferee must assume all obligations under the franchise agreement and related documents. All debts owed by the current franchisee to Dryject and its affiliates must be paid. The current franchisee must not be in default of any franchise agreements at the time of the transfer request or on the transfer date. Except for existing Dryject franchisees, the transferee cannot operate or participate in a business offering similar products or services. The transferee must meet all of Dryject's requirements for new franchisees, including good reputation, experience, business acumen, financial stability, and a willingness to devote full time and effort to the business. Dryject must receive all reasonably required information about the proposed transferee.
Dryject also has the right to approve the material terms of the transfer, ensuring that the price and payment terms do not negatively impact the transferee's operation. The transferee must execute Dryject's current standard franchise agreement and any other required ancillary agreements. The transferring franchisee, unless prohibited by law, must release all claims against Dryject and its affiliates. The transferring franchisee must pay a non-refundable transfer fee equal to forty percent (40%) of the then-current initial franchise fee for new franchisees. If the transferring franchisee provides financing to the transferee, these obligations must be subordinate to the transferee's obligations to Dryject.