Under what condition can the trainee divert business, business opportunity or customer of Franchisee's Franchised Business(s) to any competitor after termination of employment with Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
Except to the extent prohibited by the laws of the state where the Franchised Business is located or where the Trainee lives or works, in further consideration for the disclosure to Trainee of Franchisor's Trade Secrets and to protect the uniqueness of DRYJECT SYSTEM, Trainee agrees that for two (2) years following the termination of Trainee's employment with Franchisee, Trainee will not without the prior written consent of Franchisor, divert or attempt to divert, directly or indirectly, any business, business opportunity or customer of Franchisee's Franchised Business(s) to any competitor.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a trainee is restricted from diverting business, business opportunities, or customers of a Dryject franchisee to a competitor for a period of two years following the termination of their employment. This restriction is in place to protect Dryject's trade secrets and the uniqueness of the Dryject system. However, this restriction does not apply if the trainee obtains prior written consent from Dryject to divert business to a competitor.
This non-compete agreement is only enforceable to the extent permitted by the laws of the state where the franchised business is located or where the trainee lives or works. This means that the specific terms and enforceability of the non-compete agreement may vary depending on local laws. Franchisees are responsible for ensuring that their trainees adhere to the terms of this agreement.
Dryject emphasizes the importance of protecting its trade secrets and the Dryject system from unfair competition. To that end, Dryject is entitled to enforce the provisions of the agreement against both the franchisee and the trainee in the event of a breach or threatened breach. Dryject may seek legal remedies, including injunctive relief and specific performance, without being required to furnish a bond or other security.
Prospective franchisees should be aware of these restrictions and ensure that their employees, especially those with access to Dryject's trade secrets, understand and agree to abide by these terms. It is also important to understand the specific laws in their state regarding non-compete agreements to ensure compliance and manage potential legal risks.