During the trainee's employment, what financial interests related to businesses similar to Dryject are they prohibited from having?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to protect the goodwill and unique qualities of DRYJECT SYSTEM and the confidentiality and value of Franchisor's Trade Secrets, and in consideration for the disclosure to Trainee of Franchisor's Trade Secrets, Trainee further undertakes and covenants that, during the time he is employed by Franchisee, he will not:
- (a) Directly or indirectly, for himself or through, on behalf of or in conjunction with any person, partnership or business entity, engage in or acquire any financial or beneficial interest in (including interest in business entities, partnerships, trusts, unincorporated associations or joint ventures), advise, help or make loans to any entity involved in business which is the same as or similar to that conducted by DRYJECT which Business is, or is intended to be located, within the United States; or
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a trainee is restricted from acquiring financial interests in businesses similar to Dryject during their employment. Specifically, the trainee cannot directly or indirectly, for themselves or through another entity, engage in or acquire any financial or beneficial interest in any entity involved in a business that is the same as or similar to that conducted by Dryject. This includes interests in business entities, partnerships, trusts, unincorporated associations, or joint ventures. This restriction applies to businesses that are, or are intended to be, located within the United States.
This restriction is put in place to protect Dryject's goodwill and unique qualities, as well as the confidentiality and value of its trade secrets. The trainee receives access to Dryject's trade secrets, and in consideration for this disclosure, they agree to these restrictions. This prevents trainees from using the knowledge and information gained during their employment to benefit a competing business or start their own competing business while still employed.
For a prospective Dryject franchisee, this means that any individuals they employ and who receive training involving Dryject's trade secrets will be subject to these restrictions. Franchisees must ensure that their trainees understand and comply with these limitations to protect the Dryject system and trade secrets. The franchisee also undertakes to use their best efforts to ensure that the trainee acts as required by the agreement.
It's important to note that the agreement also states that Dryject would be irreparably injured in the event of a breach of this agreement, and as such, Dryject is entitled to enforce the provisions of the agreement against both the franchisee and the trainee, and may seek injunctive relief and specific performance, in addition to any other remedies available at law or in equity, without needing to furnish a bond or other security.