What standard does Dryject use when exercising its rights reasonably or in good faith?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Whenever We have expressly reserved in this Agreement or are deemed to have a right and/or discretion to take or withhold an action, or to grant or decline to grant You a right to take or withhold an action, except as otherwise expressly and specifically provided in this Agreement, We may make such decision or exercise Our right and/or discretion on the basis of Our judgment of what is in Our best interests, including without limitation Our judgment of what is in the best interests of the DryJect System, at the time Our decision is made or Our right or discretion is exercised. Any new or different requirements imposed will not unreasonably increase Your obligations or place an excessive economic burden on Your operations, or otherwise alter Your status or rights under this Agreement. You will make such expenditures for such changes or modifications in Our System as We may reasonably require. You shall not change, modify or alter in any way any material aspect of Our System, without Our prior written consent.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject may make decisions or exercise its rights based on its judgment of what is in its best interests, including what it deems to be in the best interests of the DryJect System. This applies when Dryject has expressly reserved a right or discretion to take or withhold an action, unless otherwise specified in the agreement.
This means that Dryject has significant latitude in making decisions that affect the franchise system. While this discretion is intended to benefit the entire DryJect system, it also means that individual franchisees may not always agree with Dryject's decisions. Franchisees are required to accept and implement changes to the DryJect system, even if they involve expenditures, as long as the changes do not unreasonably increase their obligations, place an excessive economic burden on their operations, or alter their fundamental status or rights under the agreement.
This clause highlights the importance of a prospective franchisee carefully evaluating the franchise agreement and understanding the extent of Dryject's decision-making authority. It is essential to consider how Dryject's interests and judgments might align or conflict with the franchisee's own business goals and operational preferences. Understanding this dynamic is crucial for a successful and harmonious franchise relationship.