Under what conditions can Dryject, its affiliates, or other franchisees supply goods or services to a Reserved Account within a Dryject franchisee's Designated Territory?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) You shall have the right to operate a DryJect Franchised Business, and to use Our Licensed Rights in Franchisee's Designated Territory. We will not grant to others (nor reserve unto ourselves except as specified in this Agreement) the right to operate a DryJect business within Your Designated Territory. However, We reserve the right to establish policies pertaining to the sale of products and services at discounted rates to customers operating multiple facilities, some of which may be located within Your Designated Territory ("Reserved Accounts"). In the event that You do not agree to provide a Reserved Account with the contracted goods or services for a facility operated within Your Designated Territory at the discounted rate, or You are unable to provide the required goods or services within Your Designated Territory, We, any of Our affiliates or another of Our franchisees may supply the goods or services, and You shall not be entitled to receive any fee or other compensation associated with the transaction.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject reserves the right to establish policies pertaining to the sale of products and services at discounted rates to customers operating multiple facilities, some of which may be located within a franchisee's Designated Territory; these customers are termed "Reserved Accounts".
If a Dryject franchisee does not agree to provide a Reserved Account with contracted goods or services for a facility operated within their Designated Territory at the discounted rate, or if the franchisee is unable to provide the required goods or services within their Designated Territory, Dryject, its affiliates, or another Dryject franchisee may supply the goods or services to that Reserved Account.
In such instances where Dryject or another franchisee fulfills the obligations to the Reserved Account, the original franchisee will not be entitled to receive any fee or other compensation associated with the transaction. This clause highlights a potential risk for franchisees, as they may lose business within their territory if they cannot or will not meet the demands of Reserved Accounts at the discounted rates set by Dryject.