After termination or expiration of the Dryject agreement, who is appointed as attorney-in-fact to engage in collection activities?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (x) Assign any and all accounts receivable to Us for collection. In connection therewith You hereby appoint Us as attorney-in-fact to engage in such collection activities following the termination or expiration of this Agreement and You specifically undertake to refrain from engaging in any such collection activities upon termination or expiration. We agree to employ good faith efforts, including, where appropriate in Our sole and exclusive judgment, the commencement of legal proceedings, to collect such accounts receivable. Nothing contained herein shall be construed or deemed to impose any duty or obligation upon Us to collect such accounts receivable and, if all or a portion of such accounts receivable are not collected by Us, You release and waive any claims thereto against Us. If We are successful in collecting all or a part of such accounts receivable, We shall remit to You such sums collected after first deducting any and all monies owed to Us; after deducting the pro rata cost of servicing the customer(s) with respect to whom the receivables were collected; and, after further deducting Our costs of collection;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject Management, LLC is appointed as the attorney-in-fact to engage in collection activities related to accounts receivable after the termination or expiration of the franchise agreement. As part of the franchise agreement, the franchisee assigns all accounts receivable to Dryject for collection purposes.
This means that upon termination or expiration of the agreement, the franchisee is contractually obligated to refrain from any collection activities. Dryject agrees to employ good faith efforts to collect outstanding accounts, including initiating legal proceedings if deemed appropriate. However, Dryject is not obligated to collect these accounts, and the franchisee waives any claims against Dryject if the accounts receivable are not collected.
If Dryject is successful in collecting the accounts receivable, they will remit the collected sums to the franchisee after deducting any monies owed to them, the pro rata cost of servicing the customer, and their costs of collection. This arrangement ensures that Dryject has the authority to pursue outstanding payments while also outlining the distribution of collected funds after covering associated expenses.