When transferring a Dryject franchise, what debts must be paid?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
r this Agreement and all other franchise documents, and the relationship created under those agreements are being assumed by the transferee;
- (ii) All ascertained debts of Yours to Us and Our affiliates have been paid;
- (iii) You, at the time of the request to transfer and as of the date of transfer, are not in default under this Agreement or any other franchise agreement;
- (iv) Except for other DryJect franchisees, the proposed transferee does not operate or participate in an entity that operates a franchise, license, or other business offering products and/or services similar to those offered by the Franchised Business;
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must first pay all outstanding debts to Dryject and its affiliates. This requirement ensures that Dryject does not have to deal with the complications of transferring a franchise with unresolved financial obligations.
In addition to settling outstanding debts, the transferring franchisee must not be in default under the Franchise Agreement or any other franchise agreement at the time of the transfer request and on the date of the transfer itself. This condition reinforces the importance of maintaining good standing with Dryject throughout the franchise term.
Furthermore, Dryject imposes 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 costs associated with processing the transfer. The FDD also states that if the franchisee is providing financing to the proposed transferee, the transferee's obligations must be subordinate to their obligation to pay fees and other amounts due to Dryject.