Does the Dryject Telephone Listing Agreement survive the termination of the Franchise Agreement?

According to Dryject's 2025 Franchise Disclosure Document, the Telephone Listing Agreement survives the termination of the Franchise Agreement. Specifically, the FDD states that the Telephone Listing Agreement remains in effect even after the Franchise Agreement ends. This means that the obligations and responsibilities outlined in the Telephone Listing Agreement continue to apply to the franchisee, even after the franchise relationship has ended.

This survival clause has significant implications for a prospective Dryject franchisee. Upon termination of the Franchise Agreement, Dryject can direct the franchisee to transfer all rights and interests in telephone numbers and listings to Dryject. The franchisee must also ensure that telephone companies transfer these listings to Dryject and execute any necessary documents to complete the transfer. This transfer is crucial for Dryject to maintain continuity in customer communication and business operations.

Moreover, the franchisee remains liable to the telephone companies for any outstanding payments or obligations incurred before the transfer of interest was accepted by Dryject. This ensures that the franchisee cannot avoid financial responsibilities simply by terminating the Franchise Agreement. The Telephone Listing Agreement includes provisions such as indemnification, where the franchisee is responsible for costs and expenses related to their performance or nonperformance, and must indemnify Dryject against any losses or claims related to the agreement.

In summary, the survival of the Telephone Listing Agreement ensures that Dryject retains control over critical business assets like telephone listings and customer communication channels, even after a franchise relationship ends. Prospective franchisees should carefully review the terms of the Telephone Listing Agreement and understand their ongoing obligations, including potential costs and liabilities, even post-termination.