Are there any exceptions to the non-disclosure, non-solicitation, and non-competition agreement required by Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the employee lives or works, You shall cause any person who is actively involved as a Key Employee, as defined in Section 12 of this Agreement, in the Franchised Business, at the time such person enters Your employment, to enter into a non-disclosure, non-solicitation and noncompetition agreement, in a form approved by Us or as We otherwise provide. You acknowledge and agree 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. You agree that You are solely responsible for obtaining Your own professional advice with respect to the adequacy of the terms and provisions of any non-compete agreement You require Your employees, agents and independent contractors to sign.
You shall use Your best efforts to prevent any such persons from; (i) using, in connection with the operation of any competing business wherever located, any of the Licensed Rights; or (ii) from operating any competing business that looks like, copies or imitates any DryJect franchised business or operates in a manner tending to have such effect. If You have reason to believe that any such person has violated the provisions of the non-disclosure, non-solicitation and noncompetition agreement, You shall immediately notify Us and shall cooperate with Us to protect Us against infringement or other unlawful use of the Licensed Rights, including, but not limited to, the prosecution of any lawsuits if, in the judgment of Our counsel, such action is necessary and advisable.
The provisions of this Section shall survive any termination or expiration of this Agreement or any renewals thereof.
28. ASSIGNMENT; CONDITIONS AND LIMITATIONS
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, there are a few stipulations regarding the non-disclosure, non-solicitation, and non-competition agreements. The franchisee is responsible for ensuring that any key employee signs a non-disclosure, non-solicitation, and non-competition agreement, except if prohibited by the laws of the state where the franchised business is located or where the employee lives or works. Dryject must approve the form of this agreement, but Dryject acknowledges that the agreement's enforceability may vary by jurisdiction. The franchisee is responsible for seeking professional advice on the adequacy of the agreement's terms.
If a key employee violates the non-disclosure, non-solicitation, and non-competition agreement, the franchisee must notify Dryject and cooperate in protecting Dryject's licensed rights. This includes taking legal action if Dryject's counsel deems it necessary. Additionally, any release signed as a condition of renewal or transfer will not apply to any claims the franchisee may have under the Minnesota Franchise Act.
Furthermore, Minnesota law includes certain protections for franchisees. Dryject is required to comply with specific Minnesota statutes regarding termination and nonrenewal notices, as well as consent to franchise transfers. These statutes mandate that franchisees receive 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal, except in certain specified cases. Consent to transfer cannot be unreasonably withheld. Minnesota law also prohibits Dryject from requiring litigation to be conducted outside of Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. These provisions ensure that franchisees retain their rights and remedies under Minnesota law, regardless of any agreements to the contrary.