Is the Dryject transfer fee refundable?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- Commencement of Operations. Section 3 of the Agreement is amended by deleting the last sentence in its entirety and replacing it with the following:
"In the event Franchise Owner does not commence operating the Franchised Business within the time period set forth herein, this Agreement shall be deemed terminated, and the Initial Franchise Fee may be kept by the Company to reimburse itself for lost opportunity costs, costs and/or expenses."
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
The 2025 Dryject Franchise Disclosure Document does not explicitly state whether the transfer fee is refundable. However, it does state conditions under which the initial franchise fee may be kept by Dryject.
Specifically, Section 4 of the Rider to the Franchise Agreement states that if a franchisee does not commence operating the franchised business within the specified time period, the franchise agreement can be terminated. In such cases, Dryject may retain the initial franchise fee to cover lost opportunity costs, expenses, and other costs.
Since the FDD does not specify the refundability of the transfer fee, prospective franchisees should seek clarification from Dryject regarding the conditions under which a transfer fee might be refundable, if any. This inquiry should cover specific scenarios and be documented to avoid future misunderstandings.