Does Dryject waive any other rights or remedies under the Agreement if it exercises its step-in rights?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
nt, it is necessary or practical. You acknowledge that this right to step-in is necessary to preserve the value and integrity of the Marks and System. Even if We exercise this right to step in, You agree that We do not lose or waive a right to exercise any other rights or remedies which We may have legally under this Agreement. Among the reasons We may act under these step-in rights are:
- (i) We reasonably determine that You are unable to operate the Franchised Business because You are absent or incapacitated because of illness, accident, injury or death;
- (ii) You have not paid Your monetary obligations to Us or others when they are due;
- (iii) You have not removed non-consensual liens or encumbrances which have been placed against the Franchised Business; or,
- (iv) We determine that material operational problems require that We operate the Franchised Business for a period of time.
- (b) During a step-in period, We will maintain in a separate account, all Gross Revenues of the Franchised Business. From that account We will pay all expenses of the Franchised Business, which will include the Royalty Service Fee, all Marketing Fund contributions or payments, and reasonable compensation and expenses for Our representatives. If these step-in rights are exercised, You agree to hold Us harmless and hold harmless Our representatives for all actions or omissions which occur during the course of the temporary operation. You agree to pay Our reasonable attorneys' fees and costs which might arise from the exercise of these step-in rights. Nothing in this Section 33 will prevent Us from exercising any other rights which We may have under this Agreement, including the right to terminate the Agreement.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject Franchise Disclosure Document, Dryject retains all other rights and remedies even if it chooses to exercise its step-in rights. Specifically, the FDD states that Dryject's right to step in and operate the franchised business temporarily does not constitute a waiver of any other legal rights or remedies they possess under the franchise agreement. This means Dryject can still pursue other actions, such as terminating the agreement, even after stepping in.
This provision is important for prospective franchisees to understand because it clarifies that Dryject's intervention to manage a struggling franchise does not limit their ability to take further action if necessary. The step-in rights are designed to protect the Dryject brand and system, but they do not prevent Dryject from exercising other contractual rights.
For a potential Dryject franchisee, this means that even if Dryject steps in to help manage the business, the franchisee is still subject to all other terms and conditions of the franchise agreement. It is crucial to fully understand the circumstances under which Dryject might exercise its step-in rights and what other remedies Dryject might pursue concurrently or subsequently. Franchisees should seek legal counsel to fully understand their rights and obligations under the agreement.