Does Dryject reserve the right to terminate the DryJect Marketing Fund?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing Fund Administration. The Marketing Fund is administered by us and may, in the future, at our option, be established as a not-for-profit corporation. The Marketing Fund will prepare internally unaudited income and expense statements on an annual basis. Income statements, expense statements and an accounting of advertising expenditures will be available to any franchisee upon written request. Excess funds not spent in any given fiscal year will be carried forward to the next fiscal year. The Marketing Fund is intended to remain in existence, however we reserve the right to terminate the Marketing Fund but only after all monies have been spent for advertising and promotion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–33)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject does reserve the right to terminate the Marketing Fund. However, this termination can only occur after all the money in the fund has been spent on advertising and promotion.
Dryject franchisees are required to contribute to the Marketing Fund, with payments structured as the greater of 2% of monthly Gross Revenues or a fixed monthly amount that escalates over the first 36 months of operation. Specifically, the payments are $0 per month for months 1-3, $100 per month for months 4-12, $200 per month for months 13-24, $300 per month for months 25-36, and $500 per month from month 37 onwards. These payments are due in advance on the 15th of each month, using the same method as the Royalty Service Fee.
The Marketing Fund is administered by Dryject and may be established as a not-for-profit corporation in the future. Dryject will prepare unaudited income and expense statements annually, which are available to franchisees upon written request. Any excess funds not spent in a given fiscal year will be carried over to the next year. This ensures that all contributions are used for their intended purpose of advertising and promotion, even if there are surpluses in certain periods.