What amount of goodwill was recognized by Dryject after the purchase of 100% of the membership units in 2016?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ly based upon such periodic evaluation.
Concentrations of Credit Risk - The Company maintains its cash balances at a financial institution where balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At December 31, 2024, the Company had no uninsured cash bal
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the purchase of 100% of the membership units in 2016 resulted in the recognition of goodwill amounting to $1,509,159. Goodwill, in accounting terms, represents the intangible assets of a business, such as brand reputation and customer relationships, that exceed its tangible assets. This figure reflects the value Dryject placed on these intangible aspects when acquiring the membership units.
Dryject adopted ASC 350-20-35-63, which provides private companies with the option to amortize goodwill over a ten-year period using the straight-line method. Amortization is the process of gradually writing off the initial cost of an asset over its useful life. By choosing this method, Dryject spreads the expense of the goodwill over ten years, which can impact the company's reported profits and tax liabilities during that time.
For a prospective franchisee, this information provides insight into Dryject's financial management practices and how it accounts for acquired assets. Understanding how goodwill is handled can be useful in assessing the overall financial health and stability of the company. It also demonstrates Dryject's adherence to specific accounting standards, which can be a sign of sound financial governance.