factual

What was the amount of the seller financed note used to purchase Dryject?

Q: What was the amount of the seller financed note used to purchase Dryject?

lances. - 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 Wilmington Savings Fund Society (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 Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

lances.

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 Wilmington Savings Fund Society (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

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 through two sources: a note from Wilmington Savings Fund Society (Bank) guaranteed by the SBA for $1,547,800, and a seller-financed note. The seller-financed note amounted to $300,000.

The total purchase price for the transaction was $1,500,000 for 100% ownership of the LLC and an additional $500,000 for the assets of DryJect Inc. The debt and financing costs were allocated with 75% assigned to the Company and 25% to DryJect Inc. Acquisition Corporation. The loan is secured by the assets of both the Company and DryJect Inc. Acquisition Corporation, and the note is guaranteed by the member.

This information is relevant for prospective Dryject franchisees as it provides insight into the financial structure of the company's acquisition. Understanding the debt obligations and how they are allocated between DryJect Management, LLC and DryJect Inc. Acquisition Corporation can give franchisees a clearer picture of the company's financial health and stability. Additionally, the fact that the note is guaranteed by a member indicates a level of personal commitment from the ownership, which may be reassuring to potential franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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