What restriction on transfers must be contained in the organizational documents of a DryJect franchisee business entity?

According to DryJect's 2025 Franchise Disclosure Document, if a franchisee is a business entity, the organizational documents must contain a restriction on transfers. Specifically, the documents must state that the franchisee cannot issue additional stock, membership, or interests in the entity. Furthermore, no individual with ownership interest can transfer, assign, or pledge any ownership interest without DryJect's prior written consent. This consent will not be unreasonably withheld.

This requirement ensures that DryJect maintains control over who owns and operates its franchises. By restricting the transfer of ownership interests, DryJect can prevent unwanted or unqualified individuals from gaining control of a franchise without their approval. This protects the brand's reputation and the interests of other franchisees in the system.

For a prospective DryJect franchisee, this means that if they choose to operate their franchise through a business entity, they must ensure that the entity's organizational documents include the necessary transfer restrictions. This may require working with an attorney to draft or amend the documents to comply with DryJect's requirements. Failure to include these restrictions could result in a breach of the franchise agreement and potential penalties.