Does Dryject have the right to affiliate with an existing competitive or non-competitive franchise regardless of location?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) You also agree that we may purchase, merge, acquire, be acquired by or affiliate with an existing competitive or non-competitive franchise or non-franchise network, chain or any other business regardless of the location of that other business' facilities, and that following such activity we may operate, franchise or license those other businesses and/or facilities under any names or marks other than (while this Agreement is in effect) the Marks, regardless of the location of these businesses and/or facilities, which may be within the Designated Territory or immediately proximate to the Designated Territory.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject retains the right to affiliate with existing franchises, whether competitive or not, irrespective of their location. Specifically, Dryject can purchase, merge, acquire, or be acquired by such businesses. Following any of these actions, Dryject has the right to operate, franchise, or license these other businesses under names and marks different from the Dryject marks. This right exists regardless of whether these businesses are within or near a franchisee's designated territory.
This clause has significant implications for prospective Dryject franchisees. It means that Dryject could potentially integrate a competing business into its network, even one located near a franchisee's territory. However, Dryject is restricted from using the Dryject marks for these other businesses while the franchise agreement is in effect.
This condition is relatively common in franchising, as it allows franchisors to grow and adapt their business models. However, it also introduces a degree of uncertainty for franchisees, as the competitive landscape within their territory could change due to actions taken by Dryject. Prospective franchisees should carefully consider this clause and discuss with Dryject how such affiliations might impact their business.