What rights do Dryject franchise owners have in California concerning termination, transfer, or non-renewal?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
The franchise agreement contains a liquidated damages clause. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable.
Prospective franchisees are encouraged to consult private legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of a franchise agreement restricting venue to a forum outside the State of California.
Section 31125 of the California Corporations Code requires us to give you a disclosure document, in a form containing the information that the commissioner may by rule or order require, before a solicitation of a proposed material modification of an existing franchise.
You must sign a general release if you renew or transfer your franchise. California Corporations Code §31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code §§31000 through 31516). Business and Professions Code §20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code §§20000 through 20043).
Any condition, stipulation or provision in the Franchise Agreement which would result in your waiver of compliance with any provision of the California Franchise Relations Act is void to the extent that such provision violates such law.
OUR WEBSITE HAS NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENT OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION at www.dfpi.ca.gov.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, several California-specific provisions protect franchisees regarding termination, transfer, and non-renewal. California law voids any waiver of rights under the Franchise Investment Law (California Corporations Code §§31000 through 31516) and the Franchise Relations Act (Business and Professions Code §§20000 through 20043). This means Dryject franchisees in California cannot be forced to surrender their legal protections under these laws. Additionally, any condition in the Franchise Agreement that would result in a franchisee waiving compliance with any provision of the California Franchise Relations Act is void to the extent that such provision violates such law. This ensures that the state's franchise regulations take precedence over conflicting terms in the agreement.
Furthermore, Dryject is required to provide a disclosure document before soliciting any proposed material modification of an existing franchise, as mandated by Section 31125 of the California Corporations Code. This ensures transparency and informed consent when changes to the franchise agreement are considered. The FDD also states that under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable, which may limit Dryject's ability to impose excessive penalties upon termination.
Prospective Dryject franchisees in California should be aware that the FDD encourages them to seek independent legal counsel to understand how California and federal laws apply to provisions in the franchise agreement, especially those restricting venue to a forum outside California. This is a crucial step to ensure that franchisees are fully aware of their rights and obligations under the law. The FDD also includes a statement that Dryject's website has not been reviewed or approved by the California Department of Financial Protection and Innovation, advising that any complaints about the website's content be directed to that department.