Under what conditions can Dryject terminate a franchise agreement if the franchisee operates on a month-to-month basis after the term?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
If You continue to operate after the end of the Term or any Renewal term without exercising an option to renew and signing Our then-current franchise agreement, You shall be deemed to be operating on a month-to-month basis under the terms and conditions of Our then-current form of franchise agreement. In such circumstances, and notwithstanding the foregoing, We may, on ten (10) days written notice, terminate Your Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 50–68)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, if a franchisee continues to operate after the end of the initial term or any renewal term without formally renewing the agreement, they are considered to be operating on a month-to-month basis under the terms of Dryject's then-current franchise agreement.
In this situation, Dryject retains the right to terminate the Franchise Agreement with only ten (10) days written notice to the franchisee. This means that Dryject is not obligated to allow the franchisee to continue operating even if they are in good standing.
This provision gives Dryject significant flexibility in managing its franchise network. A prospective franchisee should be aware that continuing operations on a month-to-month basis provides very little security and leaves them vulnerable to a quick termination of their franchise.