Is the Signer allowed to divert business from the franchisee's Dryject franchised business to a competitor?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Divert or attempt to divert, directly or indirectly, any business, business opportunity or client of Franchisee's Franchised Business(s) to any competitor.
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- Franchisee undertakes to use Franchisee's best efforts to ensure that Signer acts as required by this Agreement.
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- Signer agrees that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law. Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions thereof, Franchisor shall be entitled to enforce the provisions of this Agreement against Franchisee and Signer, and may seek, in addition to any other remedies which are made available to it at law or in equity, including the right to terminate the Franchise Agreement, a temporary and /or permanent injunction and a decree for the specific performance of the terms of this Agreement, without being required to furnish a bond or other security.
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- Signer agrees that the period during which the post-termination/expiration restrictions above apply shall be extended uninterrupted by the length of any period of time during which Signer was in violation of such restrictions.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Signer (an individual who may have access to Dryject's trade secrets) is restricted from diverting business from the franchisee to a competitor. Specifically, the Signer is prohibited from diverting or attempting to divert, directly or indirectly, any business, business opportunity, or client of the franchisee's Dryject business to any competitor. This restriction is in place to protect the goodwill and unique qualities of the Dryject system, as well as the confidentiality and value of Dryject's trade secrets.
This restriction applies both during the time the franchisee is operating under the Dryject franchise agreement and for a period of two years following the termination or expiration of the franchise agreement. This post-term restriction is designed to prevent individuals who have gained knowledge of Dryject's trade secrets and business practices from using that information to benefit a competing business shortly after leaving the Dryject system. The agreement also states that the franchisee is responsible for ensuring that the Signer complies with these requirements.
Dryject emphasizes the importance of these restrictions by stating that a breach of the agreement would cause irreparable injury to the franchisor and that legal remedies, including injunctive relief and specific performance, may be pursued in the event of a breach or threatened breach. This means Dryject can take legal action to prevent the Signer from violating the agreement and to enforce the terms of the non-compete and confidentiality provisions. The agreement also specifies that the period during which these restrictions apply can be extended if the Signer violates them, further reinforcing the franchisor's commitment to protecting its interests.