Is there an exception to the 15-day cure period for a Dryject franchisee's material breach?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
rformance of all the terms of this Agreement is necessary not only for Our protection, but also for the protection of You and Our other franchisees. As a result, You acknowledge and agree that the occurrence of any of the following events, each or any of which shall be considered a Material Breach default of this Agreement, constitutes reasonable grounds for termination of this Franchise Agreement by Us; provided, however that You shall be given the opportunity, within fifteen (15) days after receipt of written notice of such Material Breach, to cure the default by promptly providing proof of cure to Us. Notwithstanding the foregoing, if the breach is curable but is of a nature which cannot reasonably be cured within such fifteen (15) day period and You have commenced and are continuing to make good faith efforts to cure the breach, You shall be given an additional reasonable period of time to cure the default, and this Agreement shall not terminate. If any such default is not cured within the time as specified by Us, this Agreement shall terminate effective immediately without further notice to You. You shall be in default under this Agreement for failure to comply with any of the requirements imposed by the Agreement, or for failure to carry out the terms of this Agreement in good faith. Such defaults include, but are not limited to:
(i) A failure by You to remit any payments when due under this Agreement;
(ii) A failure by You to establish, equip, maintain, or update the Franchised Business in accordance with Our System Standards;
(iii) A failure by You to submit to Us financial reports or other information required under this Agreement, or a failure to allow reasonable access to Your records within the time periods required by this Agreement;
(iv) A failure by You to operate the Franchised Business in accordance with Our Operations Manual or other manuals, or a failure by You to use products, methods, equipment or suppliers which conform to Our System Standards, or Your failure to maintain Our System Standards of quality service in the operation of the Franchised Business;
(v) A failure by You to obtain Our prior written approval or consent as expressly required by this Agreement;
(vi) A failure by You to accurately or completely record all sales made in, upon or from the Franchised Business at the time of sale;
(vii) A breach by You of any other covenant, term, or provision of this Agreement;
(viii) A failure by You to open the Franchised Business within one hundred and eighty (180) days of the execution of this Agreement;
(ix) A failure by You to comply with any of Your agreements with any third parties as related to the Franchised Business; or,
(x) A failure by You to consistently pay the debts of the Franchised Business as they become due.
(c) In the event You are delivered two (2) or more notices of Material Breach from Us within a twelve (12) month period pertaining to any one (1) or more of the foregoing events of default whether or not cured after notice, during the initial Term or any renewal terms of this Agreement, We shall have the right to terminate this Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee typically has 15 days to cure a material breach after receiving written notice. However, there is an exception to this 15-day cure period. If the breach is curable but cannot reasonably be cured within 15 days, and the franchisee has started and is continuing to make good faith efforts to cure the breach, Dryject will grant an additional reasonable period to cure the default. If the franchisee fails to cure the default within the specified time, the agreement can be terminated immediately without further notice.
Dryject can terminate the franchise agreement without providing an opportunity to cure under specific circumstances. These circumstances include if the franchisee abandons the business, misuses Dryject's licensed rights, consistently fails to submit financial statements or pay royalties, intentionally underreports gross revenues, or operates the franchise in violation of any law. In these cases, termination is effective immediately after the franchisee receives written notice.
This policy is fairly standard in franchising, as franchisors need to protect their brand and system standards. The immediate termination clauses are designed to address serious breaches that could significantly harm the Dryject system. Prospective franchisees should understand these conditions and ensure they have the resources and commitment to meet the brand's standards and legal requirements to avoid potential termination without a cure period.