What assets collateralize the loan obtained by Dryject from WSFS Bank?
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 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 the 2025 Dryject FDD, a loan from WSFS Bank (formerly Bryn Mawr Trust Company) financed the transfer of 100% ownership of the LLC in August 2016. The loan, guaranteed by the SBA, was for $1,547,800, alongside a seller-financed note of $300,000. The total purchase price included $1,500,000 for the LLC ownership and $500,000 for DryJect Inc.'s assets.
The debt and associated financing costs were allocated with 75% to the Company and 25% to DryJect Inc. Acquisition Corporation. The loan itself is collateralized by the assets of both the Company and DryJect Inc. Acquisition Corporation. Additionally, the note is guaranteed by the member.
For a prospective franchisee, this indicates that Dryject's assets, along with those of DryJect Inc. Acquisition Corporation, are pledged as security for the WSFS Bank loan. This arrangement could impact the company's financial flexibility and ability to secure additional financing in the future. It also highlights the interconnected financial relationship between Dryject and DryJect Inc. Acquisition Corporation.