After termination of employment, for how long is the trainee restricted from diverting business from the franchisee's Dryject business?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
r similar to that conducted by DRYJECT which Business is, or is intended to be located, within the United States; or
- (b) Divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Business(s) to any competitor.
-
- Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the Trainee lives or works, in further consideration for the disclosure to Trainee of Franchisor's Trade Secrets and to protect the uniqueness of DRYJECT SYSTEM, Trainee agrees that for two (2) years following the termination of Trainee's employment with Franchisee, Trainee will not without the prior written consent of Franchisor, divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Franchised Business(s) to any competitor.
-
- Franchisee undertakes to use Franchisee's best efforts to ensure that Trainee acts as required by this Agreement.
-
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, a trainee is restricted from diverting business from the franchisee's Dryject business for a period of two years following the termination of their employment. This restriction is contingent upon the laws of the state where the franchised business is located or where the trainee lives or works, as these laws may prohibit such restrictions. The agreement specifies that this restriction is in consideration for the disclosure of Dryject's trade secrets to the trainee and to protect the uniqueness of the Dryject system.
This non-compete agreement prevents a former trainee from actively soliciting or redirecting existing Dryject customers or business opportunities to a competing business. This measure aims to protect the franchisee's customer base and business interests by preventing a former employee from leveraging their knowledge of the business and relationships with customers to benefit a competitor.
Dryject emphasizes the importance of protecting its trade secrets and unique system. To further protect Dryject, the agreement also states that if legal proceedings are initiated by Dryject against the trainee to enforce any non-competition covenant, the restriction period will begin on the date an order is issued granting preliminary injunctive relief and will continue uninterrupted for the entire restriction period. This ensures that any violation of the non-compete agreement will result in the full enforcement of the restriction.
As a prospective franchisee, it is important to understand the specific state laws regarding non-compete agreements to ensure the enforceability of these provisions. Franchisees should also ensure that trainees fully understand the terms of the agreement and the importance of protecting Dryject's trade secrets and business interests.