What are the specific consequences if a Dryject franchisee fails to maintain System Standards of quality service?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith.
Such defaults include, but are not limited to:
(i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our System Standards;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our System Standards, or Your failure to maintain Our System Standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
(vi) A failure by You to accurately or completely record all sales made in, upon or from the Franchised Business at the time of sale;
(vii) A breach by You of any other covenant, term, or provision of this Agreement;
(viii) A failure by You to open the Franchised Business within one hundred and eighty (180) days of the execution of this Agreement;
(ix) A failure by You to comply with any of Your agreements with any third parties as related to the Franchised Business; or,
(x) A failure by You to consistently pay the debts of the Franchised Business as they become due.
(c) In the event You are delivered two (2) or more notices of Material Breach from Us within a twelve (12) month period pertaining to any one (1) or more of the foregoing events of default whether or not cured after notice, during the initial Term or any renewal terms of this Agreement, We shall have the right to terminate this Agreement.
The effective date of any such termination notice under this Subsection shall be upon the expiration of Your receipt of three (3) days written notice to that effect, or such longer period as may be required by law.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee's failure to maintain System Standards of quality service in the operation of the Franchised Business constitutes a default under the Franchise Agreement. This is explicitly stated as one of several potential default scenarios. Other defaults include failing to remit payments, not establishing or updating the business according to System Standards, and not using approved products or suppliers. These standards are mandatory specifications, operating procedures, and rules prescribed by Dryject for the development and operation of franchised businesses. These standards may regulate any aspect of the operation and maintenance of Dryject franchised businesses, provided that all System Standards will apply uniformly to all similarly situated Dryject franchised businesses.
If a Dryject franchisee receives two or more notices of Material Breach from Dryject within a twelve-month period, regardless of whether the breaches were cured after the initial notice, Dryject has the right to terminate the Franchise Agreement. The termination becomes effective three days after the franchisee receives written notice, or after a longer period if required by law.
This policy highlights the importance of adhering to Dryject's standards to avoid potential default and termination of the franchise agreement. Prospective franchisees should carefully review the Operations Manual and Franchise Agreement to fully understand the System Standards and their obligations. Maintaining quality service is not just a best practice, but a contractual requirement with serious consequences for non-compliance.