Under what conditions can a DryJect franchisee business entity issue additional stock, membership, or interests?

According to DryJect's 2025 Franchise Disclosure Document, if a franchisee is a business entity, it cannot issue any additional stock, membership, or interests without DryJect's prior written consent. This consent will not be unreasonably withheld.

This restriction is significant for potential DryJect franchisees who plan to operate as a business entity because it limits their ability to raise capital or change ownership structure without franchisor approval. The FDD also states that a legend setting forth such restriction on transfers shall be contained in the business entity's organizational and governing documents and other appropriate documents such as certificates and stocks.

DryJect retains some control over the franchisee's business structure to ensure that the owners are committed to the franchise and meet their standards. This is a common practice in franchising, as the franchisor wants to maintain brand consistency and protect their investment. A prospective franchisee should seek clarification from DryJect regarding what conditions would warrant approval for issuing additional stock or transferring ownership interests.