Does Dryject have the right to reduce the duration, geography, or scope of any covenant in the agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ransfer of the franchise will not be unreasonably withheld.
- Item 17, summary column for (m) is amended to add the following:
Any release signed as a condition of transfer will not apply to any claims you may have under the Minnesota Franchise Act.
- Item 17, summary columns for (v) and (w) are amended to add the following:
Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in this Disclosure Document or agreement can abrogate or reduce any of your rights as provided for in Minnesota Statues, Chapter 80C, or your rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
Minn. Stat. 80C.17, subdivision 5 prohibits any action commencing section more than three years after the cause of action accrues.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, the franchise agreement cannot reduce a franchisee's rights as provided for in Minnesota statutes. Specifically, Minn. Stat. Sec. 80C.21 and Minn. Rule 2860.4400J, Dryject is prohibited from requiring litigation outside Minnesota, mandating jury trial waivers, or requiring consent to liquidated damages, termination penalties, or judgment notes. Furthermore, the disclosure document or franchise agreement cannot diminish any rights provided under Minnesota Statutes, Chapter 80C, or rights to procedures, forums, or remedies under the laws of the jurisdiction. This suggests Dryject cannot unilaterally reduce the scope, duration, or geography of covenants if doing so would violate these protected rights. However, Dryject retains the right to challenge the constitutionality of any state law that declares void or unenforceable any provision in the franchise agreement.
For franchisees operating in Wisconsin, the FDD states that covenants not to compete during the term and upon termination or expiration of a Franchise Agreement are enforceable only under certain conditions according to Wisconsin Law.
Dryject also retains specific rights regarding the operation of Dryject businesses and the use of licensed rights outside a franchisee's designated territory. They can continue to operate Dryject businesses and license others outside the franchisee's territory. They can also develop, use, and franchise rights to trade names, trademarks, service marks, trade symbols, emblems, signs, slogans, insignias, or copyrights not specifically designated as Licensed Rights, without granting the franchisee any rights to them.