What was the amount of the note from WSFS Bank, guaranteed by the SBA, used to finance the purchase of Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Note 2 Goodwill The accounting of the purchase of 100% of the membership units in 2016 resulted in the recognition of goodwill of $1,509,159. The Company adopted ASC 350-20-35-63 which allows private companies the option of amortizing goodwill over ten years on a straight-line basis.
- Note 3 Transfer of membership 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 an
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, 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 (formerly Bryn Mawr Trust Company), 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.
This indicates that WSFS Bank, with an SBA guarantee, provided a note of $1,547,800 to finance the purchase of Dryject in 2016. Additionally, a seller-financed note of $300,000 was also part of the financing. The total purchase price included $1,500,000 for the LLC ownership and $500,000 for DryJect Inc.'s assets.
The debt and associated costs were split, with 75% allocated to the Company and 25% to DryJect Inc. Acquisition Corporation. The loan is secured by the assets of both entities and guaranteed by the member. This financial structure provides insight into how Dryject was acquired and the financing arrangements in place at that time.