What right does DryJect have when giving consent to a transfer of ownership interests in a DryJect franchisee business entity?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to DryJect's 2025 Franchise Disclosure Document, DryJect has considerable discretion when deciding whether to approve a transfer of a franchise. DryJect's consent to a transfer is a subjective determination. DryJect will consider several factors, including whether the transferee assumes all of the franchisee's obligations, whether all debts to DryJect and its affiliates have been paid, and whether the franchisee is in default of any agreements.
DryJect also assesses the proposed transferee's qualifications. The transferee must meet DryJect's requirements for new franchisees. These requirements include having a good reputation and character, relevant experience, business acumen, operational ability, and financial stability. The transferee must also be willing and able to devote full time and their best efforts to operating the DryJect business. DryJect must receive all information about the proposed transferee that it reasonably requires.
These stipulations mean that a DryJect franchisee cannot simply sell or transfer their business to anyone. DryJect retains significant control over who enters its franchise system. This protects the brand's reputation and the interests of other franchisees. However, it also means that a franchisee might face difficulties in selling their business if DryJect does not approve of the potential buyer. Franchisees in Minnesota have some additional protections regarding transfers, as DryJect's consent to transfer cannot be unreasonably withheld under Minnesota law.