Are there limitations on transfer fees for a Dryject franchise?

According to Dryject's 2025 Franchise Disclosure Document, transfer fees are limited to the extent that they reflect Dryject's reasonable estimated or actual costs in completing the transfer. This means Dryject cannot charge an arbitrarily high transfer fee; it must be tied to the actual expenses Dryject incurs during the transfer process.

In addition to the general limitation on transfer fees, the FDD also specifies a non-refundable transfer fee equal to forty percent (40%) of the then-current Initial Franchise Fee being charged to new franchisees. This fee is intended to cover Dryject's reasonable costs in effecting the transfer. This provides a concrete calculation method for the transfer fee, but it is still subject to the overarching requirement that the fee reflects Dryject's actual costs.

Prospective Dryject franchisees should be aware of these limitations on transfer fees, especially if they anticipate selling their franchise in the future. It is advisable to inquire about what specific costs are included in the transfer fee to ensure transparency and compliance with the FDD. Franchisees operating in Minnesota should also note that any release signed as a condition of transfer will not apply to any claims they may have under the Minnesota Franchise Act.