Is a spouse or domestic partner of a Dryject franchise owner required to sign the Franchise Agreement or provide a personal guaranty?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not require a spouse or domestic partner of the owner to sign the Franchise Agreement nor provide a personal guaranty; however, we do require that your spouse or domestic partner sign a Spousal Non-Disclosure and Non-Competition Agreement, subject to state law; our current form is attached as Exhibit F to this Disclosure Document.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 38)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a spouse or domestic partner of a Dryject franchise owner is not required to sign the Franchise Agreement or provide a personal guaranty. However, Dryject does require that a spouse or domestic partner sign a Spousal Non-Disclosure and Non-Competition Agreement, subject to state law. The current form for this agreement is attached as Exhibit F to the Disclosure Document.
This requirement for a Spousal Non-Disclosure and Non-Competition Agreement is fairly common in franchising. It aims to protect the franchisor's confidential information and prevent unfair competition by ensuring that even if the spouse or domestic partner is not directly involved in the business, they are still bound by certain restrictions. This is particularly important given that spouses or domestic partners often have access to sensitive business information.
Prospective Dryject franchisees should carefully review Exhibit F of the FDD to understand the specific terms and conditions of the Spousal Non-Disclosure and Non-Competition Agreement. They should also consult with an attorney to ensure that the agreement is enforceable under the laws of their state and that they understand their obligations.