What was the amount of goodwill 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 contribute to its value.
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. This accounting practice allows Dryject to systematically reduce the value of goodwill on its balance sheet over ten years, which can impact its reported profits and tax liabilities.
For a prospective franchisee, this information provides insight into Dryject's financial management and accounting practices. Understanding how goodwill is accounted for can be useful in assessing the overall financial health and stability of the franchisor. It also demonstrates how Dryject is managing its assets and liabilities, which can be a factor in evaluating the long-term viability of the franchise system.