Under what circumstances can Dryject request signed covenants of confidentiality and noncompetition?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
At our request, you must obtain and deliver signed covenants of confidentiality and noncompetition from any and all people who have or may have an ownership interest in the Franchise Owner or in the Franchised Business or who receive or have access to training and other confidential information under the System. The covenants must be in a form satisfactory to us, and must provide that we are a third party beneficiary of, and have the independent right to enforce the covenants.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 38)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject can request signed covenants of confidentiality and noncompetition from individuals associated with the franchise. Specifically, Dryject can request these covenants from anyone who has or may have an ownership interest in the Franchise Owner or the Franchised Business.
Additionally, Dryject can request these covenants from individuals who receive or have access to training and other confidential information related to the Dryject system. This ensures that anyone with access to Dryject's trade secrets and operational knowledge is legally bound to protect that information.
The covenants must be in a form that Dryject finds satisfactory. Furthermore, Dryject must be named as a third-party beneficiary, granting them the independent right to enforce these covenants. This provision is designed to safeguard Dryject's interests by ensuring direct legal recourse if confidentiality or non-competition agreements are violated.