Can the terms and conditions of the renewal Dryject franchise agreement differ substantially from the original agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) You execute Our then-current standard form of franchise agreement (with appropriate modifications to reflect that such agreement relates to the grant of a renewal franchise including application of Your prior years as a franchisee to the determination of the Annual Royalty Service Fee and Annual Minimum Service Fee) being executed by franchisees for new DryJect franchised businesses, which agreement shall supersede in all respects this Agreement and which may contain terms and conditions substantially different from those set forth in this Agreement, including, without limitation, a different royalty fee, different advertising expenditure requirements, and a smaller Designated Territory;
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the terms and conditions of the renewal franchise agreement can indeed differ substantially from the original agreement. To renew the franchise, a franchisee must execute Dryject's then-current standard form of franchise agreement, which may contain terms and conditions substantially different from those in the original agreement.
These potential differences can include, but are not limited to, a different royalty fee, different advertising expenditure requirements, and even a smaller designated territory. This means that a franchisee could face increased costs or reduced territory size upon renewal, impacting their potential revenue and profitability.
In addition to accepting potentially altered terms, the franchisee must also satisfy other conditions to qualify for renewal. These include resolving all monetary obligations, remaining compliant with the agreement terms, executing a general release of claims against Dryject, completing any required retraining, upgrading equipment to current standards, and paying a renewal fee equal to 20% of the initial franchise fee then being paid by new franchisees. Prospective franchisees should carefully consider these factors and their potential financial impact when evaluating the Dryject franchise opportunity.