Are there any exceptions to the non-compete agreement for Dryject based on state law?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
n Fair Dealership Law, the abovementioned provisions will be superseded by the Law's requirements, which states that if DRYJECT MANAGEMENT, LLC, at the option of DRYJECT MANAGEMENT, LLC, repurchases inventory which was sold by DRYJECT MANAGEMENT, LLC to You, fair market value must be paid for all merchandise bearing a name, trade name, label or other mark which identifies DRYJECT®."
"Covenants not to compete during the term of and upon termination or expiration of a Franchise Agreement are enforceable only under certain conditions according to Wisconsin Law."
EXHIBIT K SPECIFIC STATE RIDERS TO FRANCHISE AGREEMENT
As to any state law described in this Addenda that declares void or unenforceable any provision contained in the DryJect Management, LLC Franchise Agreement, DryJect Management, LLC reserves the right to challenge the constitutionality of the state law by bringing an appropriate legal action or raising the claim in a legal action or arbitration that you initiate.
CALIFORNIA RIDER TO THE DRYJECT MANAGEMENT, LLC FRANCHISE AGREEMENT
The Franchise Agreement is modified as follows: part of the Agreement. This Rider is being executed because the Licensed Business to be operated by you pursuant to the Agreement will be located in the State of California and/or because you are a resident of the State of California.
- 1 . Deferral of Initial Fees. The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the non-compete agreements may be subject to exceptions based on state law. Specifically, the franchise agreement states that covenants not to compete during the term and upon termination or expiration of a Franchise Agreement are enforceable only under certain conditions according to Wisconsin Law. This suggests that the enforceability of non-compete clauses can vary depending on the jurisdiction.
Furthermore, the franchise agreement indicates that any state law that declares void or unenforceable any provision contained in the DryJect Management, LLC Franchise Agreement allows Dryject Management, LLC to reserve the right to challenge the constitutionality of the state law. This implies that Dryject may contest state laws that restrict the enforcement of non-compete agreements.
Additionally, the franchise agreement states that the franchisee must ensure any person who is actively involved as a Key Employee in the Franchised Business, at the time such person enters Your employment, to enter into a non-disclosure, non-solicitation and noncompetition agreement, Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee lives or works. The franchisee acknowledges that any form of non-disclosure, non-solicitation and non-competition agreement is a form of agreement only and that it may or may not be enforceable in a particular jurisdiction, and that the franchisee is solely responsible for obtaining their own professional advice with respect to the adequacy of the terms and provisions of any non-compete agreement they require their employees, agents and independent contractors to sign. This highlights the importance of franchisees understanding the specific laws in their state regarding non-compete agreements and seeking legal counsel to ensure compliance.