Are there any geographic limitations on the trainee's restriction from diverting business from the franchisee's Dryject business after termination?
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 Trainee lives or works, in further consideration for the disclosure to Trainee of Franchisor's Trade Secrets and to protect the uniqueness of DRYJECT SYSTEM, Trainee agrees that for two (2) years following the termination of Trainee's employment with Franchisee, Trainee will not without the prior written consent of Franchisor, divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Franchised Business(s) to any competitor.
Franchisee undertakes to use Franchisee's best efforts to ensure that Trainee acts as required by this Agreement.
Trainee agrees that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law.
Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions thereof, Franchisor shall be entitled to enforce the provisions of this Agreement against Franchisee and Trainee, and may seek, in addition to any other remedies which are made available to it at law or in equity, including the right to terminate the Franchise Agreement, a temporary and /or permanent injunction and a decree for the specific performance of the terms of this Agreement, without being required to furnish a bond or other security.
Should legal proceedings have to be brought by Franchisor against Trainee to enforce any Non-Competition Covenant or for Trainee's failure to maintain Confidentiality, the period of restriction shall be deemed to begin running on the date of entry of an order granting Franchisor preliminary injunctive relief and shall continue uninterrupted for the entire period of restriction.
This Agreement shall be governed by and construed under the laws of the Commonwealth of Pennsylvania.
If any Court or other tribunal having jurisdiction to determine the validity or enforceability of this Agreement determines that it would be unenforceable as written, its provisions shall be determined to be withheld, modified or limited to such extent or in such manner as is necessary for it to be valid and enforceable to the greatest extent possible.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, a trainee is restricted from diverting business from the franchisee's Dryject business after termination of employment. Except where prohibited by law, the trainee agrees not to divert business from the franchisee to any competitor for two years following termination of employment. This restriction applies regardless of where the trainee lives or works. The franchisee is responsible for ensuring the trainee complies with this agreement.
Dryject includes these restrictions to protect its goodwill, unique qualities, and trade secrets. If a trainee breaches the agreement, Dryject can seek legal remedies, including injunctions and specific performance, and is not required to furnish a bond or other security. The period of restriction will be extended by the length of any violation.
These measures are designed to protect Dryject's market position and overall image. The trainee acknowledges that breaching the agreement would cause irreparable injury to Dryject. The agreement is governed by the laws of the Commonwealth of Pennsylvania, but if any part of the agreement is deemed unenforceable, it will be modified to the extent necessary to make it valid while still providing the maximum possible protection for Dryject.