Does Dryject have the right to approve the material terms of a transfer?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
We must be provided all information about the proposed transferee as We may reasonably require;
(vi) We shall have the right to approve the material terms and conditions of the transfer, including, without limitation, the right to confirm that the price and terms of payment are not so burdensome as to affect adversely the transferee's operation of the Franchised Business;
(vii) The proposed transferee executes or, in appropriate circumstances, causes all necessary parties to execute Our then-current standard form of franchise agreement (provided that such execution will not serve to extend the then remaining Term of the franchise) and such other then-current ancillary agreements being required by Us of new franchisees on the date of transfer;
(viii) You, except to the extent prohibited by applicable law, have executed a general release of any and all claims against Us and Our subsidiaries and affiliates, and Our respective officers, directors, agents and employees;
(ix) You have paid to Us a non-refundable Transfer Fee equal to forty percent (40%) of the then-current Initial Franchise Fee being charged to new franchisees to cover Our reasonable costs in effecting the transfer;
(x) If You are providing financing to the proposed transferee for any part of the purchase price, You have agreed that all of the proposed transferee's obligations under promissory notes, agreements or security interests reserved in the Franchised Business are subordinate to the proposed transferee's obligation to pay fees and other amounts due to Us and otherwise to comply with the franchise agreement; and,
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject retains the right to approve the material terms and conditions of a franchise transfer. This includes the authority to ensure that the price and payment terms associated with the transfer do not negatively impact the transferee's ability to successfully operate the Dryject franchise.
Dryject's approval extends to various aspects of the transfer process. The prospective transferee must meet all of Dryject's requirements for new franchisees. The transferee is also required to execute Dryject's then-current standard franchise agreement and any other ancillary agreements. The transfer is contingent upon the franchisee providing all required information about the proposed transferee.
Furthermore, the franchisee must pay Dryject a non-refundable transfer fee equal to forty percent of the then-current initial franchise fee charged to new franchisees. The transfer fee covers Dryject's costs associated with facilitating the transfer. The franchisee also needs to execute a general release of claims against Dryject and its affiliates. If the franchisee provides financing to the transferee, the franchisee's rights must be subordinate to the transferee's obligations to Dryject.
These stipulations ensure that Dryject maintains control over who enters its franchise system and that the financial terms of the transfer are reasonable. This protects the brand and the interests of other franchisees within the Dryject system.