What specific overhead costs are included in the enforcement costs that a Dryject franchisee must pay?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
e, defend, or hold harmless the franchisor or other parties is hereby modified such that the franchisee has no obligation to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that they are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.
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- Attorneys' Fees. If the franchise agreement or related agreements require
a franchisee to reimburse the franchisor for court costs or expenses, including attorneys' fees, such provision applies only if the franchisor is the prevailing party in any judicial or arbitration proceeding.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, if the franchise agreement or related agreements require a franchisee to reimburse Dryject for court costs or expenses, including attorneys' fees, such provision applies only if Dryject is the prevailing party in any judicial or arbitration proceeding. This means that a Dryject franchisee may be responsible for covering Dryject's legal expenses if Dryject wins a legal dispute against them.
This condition is modified in Washington state. According to the FDD, any provision in the franchise agreement or related agreements requiring the franchisee to indemnify, reimburse, defend, or hold harmless the franchisor or other parties is modified such that the franchisee has no obligation to indemnify, reimburse, defend, or hold harmless the franchisor or any other indemnified party for losses or liabilities to the extent that they are caused by the indemnified party's negligence, willful misconduct, strict liability, or fraud.
It is important for prospective Dryject franchisees to understand under what circumstances they might be responsible for Dryject's legal costs, as these can be substantial and impact the profitability of their franchise. Franchisees should carefully review the franchise agreement and related documents with a legal professional to fully understand their obligations and potential liabilities.