What is the Signer's obligation to protect the goodwill of the Dryject System?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Signer shall not, directly or indirectly, do any act or omit to do any act, which would or would likely to be injurious or prejudicial to the goodwill associated with DRYJECT SYSTEM.
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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, the Signer, who may have access to Dryject's trade secrets, has an obligation not to take any action that could harm the goodwill associated with the Dryject System. Specifically, the Signer must not directly or indirectly perform any act or omission that could be detrimental or damaging to the goodwill of the Dryject System. This obligation is part of the agreement to maintain the confidentiality of Dryject's trade secrets.
To further protect the goodwill and unique qualities of the Dryject System, the Signer agrees that during the time the Franchisee is a franchisee and for two years after the termination or expiration of the Franchise Agreement, the Signer will not engage in or have a financial interest in any business that is the same as or similar to Dryject within the United States. This restriction is in place to prevent the Signer from using the knowledge and trade secrets gained from Dryject to compete against the franchise system.
This obligation ensures that individuals with access to Dryject's confidential information are legally bound to protect the brand's reputation and competitive advantage. For a prospective franchisee, this means that any individuals they involve in their Dryject business who have access to trade secrets, such as a 'Signer', are legally obligated to protect the Dryject brand and cannot use their knowledge to compete with the system, even after the franchise agreement ends. This provides a level of security and protection for the Dryject franchise system's goodwill and market position.