What section of the Dryject franchise agreement outlines the covenant not to compete?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 8: BUSINESS RELATIONSHIP]
- (ii) own, manage, maintain, operate, engage in, advise, consult with, invest in, be employed by or perform services as a director, officer, manager, representative, agent, or otherwise, or have any direct or indirect interest in any business that (a) specializes, in whole or in part, in offering to the public substantially similar products and/or services to those products and/or services offered by Your Franchised Business prior to the termination or expiration of this Agreement within a fifty (50) mile radius of any other franchisee's franchised business or any Franchisor-owned or affiliate-owned DryJect business (a "Competitive Business") or (b) grants franchises or licenses to others to operate a Competitive Business.
27. NON-DISCLOSURE, NON-SOLICITATION AND NON-COMPETITION AGREEMENTS
Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee lives or works, You shall cause any person who is actively involved as a Key Employee, as defined in Section 12 of this Agreement, in the Franchised Business, at the time such person enters Your employment, to enter into a non-disclosure, non-solicitation and noncompetition agreement, in a form approved by Us or as We otherwise provide. You acknowledge and agree that any form of non-disclosure, non-solicitation and non-competition agreement is a form of agreement only and that it may or may not be enforceable in a particular jurisdiction. You agree that You are solely responsible for obtaining Your own professional advice with respect to the adequacy of the terms and provisions of any non-compete agreement You require Your employees, agents and independent contractors to sign.
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- Except to the extent prohibited by the laws of the state where the Franchised Business is located, in order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Signer of Franchisor's Trade Secrets, Signer further undertakes and covenants that, during the time Franchisee is a franchisee of Franchisor and for the two (2) years following the termination or expiration of Franchisee's Franchise Agreement, Signer will not:
- (a) Directly or indirectly, for himself/herself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States; or
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, Item 8 discusses the covenant not to compete within the franchise agreement. Specifically, it states that franchisees are restricted from engaging in any competitive business that offers similar products or services to Dryject within a 50-mile radius of any other franchisee or franchisor-owned Dryject business. This restriction applies both during the term of the agreement and after its termination or expiration.
Dryject also requires franchisees to ensure that any key employees sign a non-disclosure, non-solicitation, and non-competition agreement. The franchisee is responsible for seeking professional advice to ensure the adequacy and enforceability of these agreements. The FDD also states that for two years following the termination or expiration of the Franchise Agreement, the Signer will not engage in or acquire any financial or beneficial interest in any business which is the same as or similar to that conducted by "DryJect"® which business is, or is intended to be located, within the United States.
These covenants aim to protect Dryject's licensed rights, trade secrets, and the overall integrity of the Dryject system. The franchisor emphasizes that these restrictions are necessary to safeguard the goodwill and unique qualities associated with the Dryject brand. However, the agreement also acknowledges that if any of the covenants are found to be overly restrictive under applicable law, they may be reformed or modified by a court to ensure they are lawful and enforceable.