What was the settlement amount Dryject received in 2018 from a licensee?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
2022 and reimbursed expenses of $45,090 in 2022 to DryJect Inc. Acquisition Corporation. At December 31, the Company had an account payable of $95,314 in 2023 and $195,817 in 2022 to DryJect Inc. Acquisition Corporation. The Company and DryJect Inc. Acquisition Corporation have a common owner.
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Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, in March 2016, Dryject filed a lawsuit against a licensee for breach of contract and misappropriation of trade secrets. The company and the licensee reached a settlement in 2018 for $70,000. Dryject received $10,000 in 2018, with the remaining $60,000 paid in installments of $15,000 each January through 2022.
For a prospective franchisee, this indicates that Dryject is willing to take legal action to protect its interests, including pursuing claims against licensees who breach their contracts or misappropriate trade secrets. The settlement amount of $70,000 suggests the potential value Dryject places on its contractual agreements and proprietary information.
However, it's important to note that the settlement was reached in 2018, and the specific terms of franchise agreements and the nature of potential disputes may have changed since then. A prospective franchisee should review the current franchise agreement carefully and seek legal counsel to understand their rights and obligations, as well as the potential consequences of breaching the agreement or misappropriating trade secrets.
Furthermore, the fact that the settlement was paid out over several years suggests that Dryject may be willing to negotiate payment terms in certain situations. A prospective franchisee should consider this when evaluating the financial aspects of the franchise agreement and planning for potential contingencies.