How does this Rider amend Section 3 of the Dryject franchise agreement regarding the commencement of operations?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- Commencement of Operations. Section 3 of the Agreement is amended by deleting the last sentence in its entirety and replacing it with the following:
"In the event Franchise Owner does not commence operating the Franchised Business within the time period set forth herein, this Agreement shall be deemed terminated, and the Initial Franchise Fee may be kept by the Company to reimburse itself for lost opportunity costs, costs and/or expenses."
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, a Rider amends Section 3 of the franchise agreement, which concerns the commencement of operations. The amendment involves deleting the last sentence of Section 3 in its entirety and replacing it with a new stipulation.
Under the revised terms, if a Dryject Franchise Owner fails to commence operating the Franchised Business within the stipulated timeframe, the franchise agreement will be deemed terminated. Furthermore, Dryject is entitled to retain the Initial Franchise Fee.
This retention of the Initial Franchise Fee serves as a reimbursement to Dryject for lost opportunity costs, as well as any other costs or expenses incurred as a result of the franchisee's failure to commence operations. This amendment clarifies the consequences and financial implications should a franchisee not begin operations as agreed, potentially increasing the financial risk for franchisees who are unable to start their business in a timely manner.