Does Dryject have any restrictions on assigning the franchise agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) You acknowledge and agree that the restrictions on transfer imposed herein are reasonable and are necessary to protect Our Franchise System; Our trade secrets and operating procedures; Our general high reputation and image; the Licensed Rights; as well as You and Our other DryJect franchisees. Any assignment or transfer permitted by this Agreement shall not be effective until We receive a completely executed copy of all transfer documents and consent to such transfer in writing. Under no circumstances will You have a right to transfer under this Agreement before the Franchised Business has commenced operations.
- (d) Your performance is of vital importance to the market position and Our overall image, and there are many subjective factors that comprise the process by which We select a suitable franchisee. Our consent to a transfer or assignment by You of the Franchise and Franchised Business shall, in addition to the other restrictions and requirements herein noted, remain a
subjective determination and shall consider, but not be limited to, whether:
(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;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 39–41)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, there are significant restrictions on a franchisee's ability to assign or transfer their franchise agreement. Dryject must provide written consent for any assignment or transfer, and no transfer is allowed before the franchised business commences operations.
Dryject's consent is a subjective determination, considering several factors. These include ensuring the transferee assumes all of the franchisee's obligations, all debts to Dryject and its affiliates are paid, and the franchisee is not in default of any agreements. The proposed transferee cannot operate a similar business (with exceptions for existing Dryject franchisees) and must meet all of Dryject's requirements for new franchisees, such as good reputation, experience, financial stability, and a commitment to devote full time and effort to the business.
Dryject requires complete information about the proposed transferee to make a reasonable determination. These restrictions are in place to protect Dryject's franchise system, trade secrets, reputation, and the interests of existing franchisees. The FDD emphasizes that these restrictions are deemed reasonable and necessary for the protection of the Dryject system.