Under what circumstances regarding competing businesses would a Dryject franchisee be in breach of the agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ies 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
- (b) Divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Business(s) to any competitor.
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Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, a franchisee would be in breach of the agreement if they engage in certain activities related to competing businesses. Specifically, a Dryject franchisee cannot directly or indirectly engage in or acquire any financial interest in a business that is the same as or similar to Dryject, if that business is located within the United States. This includes involvement through partnerships, business entities, trusts, unincorporated associations, or joint ventures.
Additionally, a Dryject franchisee is prohibited from diverting or attempting to divert any business, business opportunity, or customer from their Dryject franchise to any competitor. This restriction aims to protect Dryject's market share and prevent franchisees from using their knowledge and resources gained through the franchise to benefit a competing entity.
Dryject also requires franchisees to ensure their trainees comply with these restrictions. If a trainee breaches the agreement by engaging in competitive activities or divulging trade secrets, the franchisee could be held responsible. This highlights the importance of franchisees carefully monitoring and managing their employees to prevent potential breaches of the franchise agreement.
In the event of a breach or threatened breach of these provisions, Dryject is entitled to enforce the agreement against the franchisee and trainee. Dryject may seek legal remedies, including a temporary or permanent injunction and specific performance of the agreement's terms. This means Dryject can take legal action to stop the franchisee or trainee from engaging in the prohibited activities and ensure they fulfill their obligations under the agreement. The franchisor does not have to furnish a bond or other security to obtain injunctive relief.