Are transfers by devise or inheritance of a Dryject franchise subject to the same restrictions and conditions as *inter vivos* transfers?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of Your death, mental incapacity or permanent disability or that of any person with a controlling interest in You, the executor, administrator, or personal representative of that person shall transfer his or her interest to a third party approved by Us within three (3) months after such death, mental incapacity or permanent disability. Such transfers, including, without limitation, transfers by devise or inheritance, shall be subject to the same restrictions and conditions as any inter vivos transfer. However, in the case of a transfer by devise or inheritance, if the heirs or beneficiaries of any deceased person are unable to fully satisfy the conditions contained in this Agreement, the personal representative of the deceased shall have a reasonable time, in Our sole discretion, to dispose of the deceased's interest in the Franchise, which disposition will be subject to all the terms and conditions for transfer contained in this Agreement. If the deceased's interest is not transferred within a reasonable time, as determined by Us in Our sole discretion, We may terminate this Agreement. The term "permanent disability" shall mean a mental, physical or emotional disability, incapacity, impairment, or condition that is reasonably expected to prevent or actually does prevent You (or an Owner controlling You) from supervising the management and operation of the Franchised Business for a period of one hundred and twenty (120) days from the onset of such disability, incapacity, impairment or condition. In any event, the Franchised Business must at all times be managed by a designated manager who has complied with all of Our training requirements, regardless of any death, mental incapacity or permanent disability covered by this Section.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, transfers of a Dryject franchise by devise or inheritance are generally subject to the same restrictions and conditions as inter vivos (lifetime) transfers. This means that if a franchisee dies, becomes incapacitated, or is permanently disabled, their interest in the franchise must be transferred to a third party approved by Dryject within three months.
However, the FDD also states that if the heirs or beneficiaries are unable to fully satisfy the conditions of the franchise agreement, the personal representative of the deceased has a reasonable time, determined at Dryject's sole discretion, to dispose of the deceased's interest. If the interest is not transferred within that reasonable time, Dryject may terminate the franchise agreement.
This clause highlights the importance of succession planning for Dryject franchisees. It is crucial to ensure that heirs or beneficiaries are both willing and able to meet Dryject's requirements for franchisees to avoid potential termination of the agreement. The designated manager must also comply with all of Dryject's training requirements.