Does Dryject retain the right to operate DryJect businesses outside of my designated territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) Except as provided for in Section 4 of this Agreement above, the Franchised Business and Licensed Rights granted under this Agreement are non-exclusive, and We retain the right, in Our sole discretion:
(i) To continue to operate DryJect businesses and to use the Licensed Rights in any territory outside of Your Designated Territory, and to license others to do so; and,
(ii) To develop, use and franchise the rights to any trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignias or copyrights not specifically designated by Us as Licensed Rights, for use with similar or different franchise systems in any territory, on such terms and conditions as We may deem advisable, and without granting You any rights.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, Dryject retains specific rights regarding the operation of businesses outside a franchisee's designated territory. The franchise agreement grants franchisees a non-exclusive license, allowing Dryject to operate DryJect businesses and utilize licensed rights in any territory outside of a franchisee's designated area. This means that even within a franchisee's general market area, Dryject can still operate or license others to operate competing Dryject businesses.
This clause also allows Dryject to develop, use, and franchise rights to any trade names, trademarks, service marks, or copyrights not specifically designated as Licensed Rights, for similar or different franchise systems in any territory. This could potentially lead to the introduction of competing brands or services by Dryject within or near a franchisee's territory, without granting the franchisee any rights or control over these new ventures.
For a prospective Dryject franchisee, this non-exclusivity has significant implications. It is crucial to understand that the designated territory does not guarantee complete protection from competition, either from Dryject directly or from other businesses licensed by Dryject. This factor should be carefully considered when evaluating the potential market and financial viability of a Dryject franchise.