Is there any geographic limit to the non-disclosure, non-solicitation and non-competition agreements for Dryject Key Employees?
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.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject franchisees are generally required to have their key employees sign non-disclosure, non-solicitation, and non-competition agreements. However, this requirement is subject to the laws of the state where the franchised business is located or where the employee lives or works, meaning that if state law prohibits such agreements, they may not be required or enforceable. A "Key Employee" is defined as anyone who is an owner, partner, member and/or employee who acts in a management, supervisory or sales capacity for or on behalf of the Franchised Business.
The FDD states that franchisees must use their best efforts to prevent key employees from using the licensed rights in any competing business, regardless of its location, or from operating a competing business that imitates a Dryject franchise. Franchisees are obligated to notify Dryject if they believe a key employee has violated these agreements and must cooperate with Dryject to protect against infringement of the licensed rights.
These non-disclosure, non-solicitation, and non-competition agreements are designed to protect Dryject's confidential information, trade secrets, and goodwill. The franchisee acknowledges that these agreements may or may not be enforceable in specific jurisdictions and is responsible for seeking professional advice regarding the adequacy of the terms. This means that the geographic scope and enforceability of these agreements can vary, depending on state laws and judicial interpretation.
For prospective Dryject franchisees, it is crucial to understand the specific laws in their state regarding non-disclosure, non-solicitation, and non-competition agreements. They should consult with legal counsel to ensure that the agreements they use with their key employees are enforceable and compliant with local laws. Additionally, franchisees should be prepared to take swift action if they suspect a key employee has violated these agreements to protect Dryject's interests and their own investment.