Based on the 2025 Dryject Franchise Disclosure Document, the timing of when Dryject satisfies the conditions for recognizing the initial franchise fee depends on the location of the franchise. For franchisees in Maryland and Minnesota, the initial franchise fees and payments are deferred until Dryject has fulfilled its pre-opening obligations.

Specifically, in Maryland, this deferral is due to a financial assurance required by the Maryland Securities Commissioner based on Dryject's financial condition. In Minnesota, the deferral lasts until Dryject completes its initial pre-opening obligations and the franchise is open for business. This means that Dryject does not recognize the initial franchise fee as revenue until these conditions are met.

For prospective franchisees, this deferral of initial fees could be beneficial, as it reduces the upfront financial burden and aligns the payment of fees with the progress of the franchise setup. However, it is important to understand the specific pre-opening obligations that Dryject must fulfill and the timeline for completing these obligations to estimate when the initial franchise fee will become due. Franchisees should also be aware of any specific conditions or requirements imposed by state regulations, such as the financial assurance required in Maryland.