Until what point does Dryject defer the collection of initial fees from California franchisees?

According to Dryject's 2025 Franchise Disclosure Document, the collection of initial fees from California franchisees is deferred until specific conditions are met. The California Rider to the Dryject Management, LLC Franchise Agreement states that the Department of Financial Protection and Innovation has determined that Dryject has not demonstrated adequate capitalization or that it relies on franchise fees to fund its operations. As a result, the Commissioner has imposed a fee deferral condition.

This condition mandates that Dryject must defer the collection of all initial fees from California franchisees until it has completed all of its pre-opening obligations. Furthermore, the deferral extends until the franchisee is actually open for business. This means a new Dryject franchisee in California will not be required to pay the initial franchise fee until Dryject has fulfilled its obligations to help them get started, and their business is officially operational.

This deferral of initial fees is a significant benefit for prospective Dryject franchisees in California, as it reduces the upfront financial burden. It also provides some assurance that Dryject is committed to supporting the franchisee through the initial setup phase. However, it is important for potential franchisees to understand exactly what Dryject's pre-opening obligations are and to ensure that these obligations are indeed fulfilled before the business opens.