What was the amount of the member's draw from Dryject in 2022?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
alance shall be termed out in monthly payments of principal and interest and is due to expire in August 2033. The line of credit balance is reflected on the books of DryJect Inc. Acquisition Corporation since the proceeds are deposited directly into the Corporation and used for their expenses.
- Note 7 Transactions with Related Parties For the year ended December 31, the Company incurred management fees of $710,000 in 2023 and $655,000 in 2022 and reimbursed expenses of $45,090 in 2022 to DryJect Inc. Acquisition Corporation. At December 31, the Company had an account payable of $95,314 in 2023 and $195,817 in 2022 to DryJect Inc. Acquisition Corporation. The Company and DryJect Inc. Acquisition Corporation have a common owner.
- Note 8 Settlement In March 2016, the Company filed suit for unspecified damages against a licensee for breach of contract and misappropriation of trade secrets. The Company and the licensee settled in 2018 for $70,000, with $10,000 paid in 2018 and $15,000 paid in January of each year through 2022.
- Note 9 Subsequent Events The Company has evaluated subsequent events through April 2, 2024, which is the date the financial statements were available to be issued. No subsequent events have been identified that require recognition or disclosure in the financial statements were identified by management.
DRYJECT MANAGEMENT, LLC FINANCIAL STATEMENTS DECEMBER 31, 2022
ROGER K.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the provided excerpts do not contain the specific amount of the member's draw for 2022. While the document includes financial statements and notes, it does not explicitly state the member's draw. The financial statements included in the excerpts are the balance sheets as of December 31, 2023 and 2022, the statements of income and member's capital, and cash flows for the years then ended. These statements are audited by Roger K. Stein, CPA LLC. The excerpts also include information on transactions with related parties, such as management fees paid to DryJect Inc. Acquisition Corporation. For example, in 2022, Dryject incurred management fees of $655,000 and reimbursed expenses of $45,090 to DryJect Inc. Acquisition Corporation. At the end of 2022, Dryject had an account payable of $195,817 to DryJect Inc. Acquisition Corporation. The company also settled a lawsuit in 2018 for $70,000, with the final payment of $15,000 made in January 2022. However, none of these figures represent the member's draw. The excerpts also discuss the company's line of credit and long-term debt. The company and DryJect Inc. Acquisition Corporation have a $500,000 revolving line of credit with Wilmington Savings Fund Society (Bank), with interest at 2% over prime. As of December 31, 2022, $134,525 was outstanding. The purchase of 100% of the membership units in 2016 resulted in the recognition of goodwill of $1,509,159. In August 2016, 100% of the ownership of the LLC was transferred to a new member. The purchase was financed with a note from WSFS Bank, guaranteed by the SBA, for $1,547,800 and a seller financed note of $300,000. The purchase price was $1,500,000 for 100% of the ownership of the LLC and $500,000 for the assets in DryJect Inc. The debt and cost of the financing is allocated 75% to the Company and 25% to DryJect Inc. Acquisition Corporation. The loan is collateralized by the assets of the Company and DryJect Inc. Acquisition Corporation. The note is guaranteed by the member. As a prospective franchisee, it is important to ask the franchisor directly about the member's draw for 2022 to gain a clear understanding of the company's financial performance and distribution of profits.