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In August 2016, to whom was 100% of the ownership of the Dryject LLC transferred?

Q: In August 2016, to whom was 100% of the ownership of the Dryject LLC transferred?

nces. - 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)

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

nces.

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 Dryject LLC was transferred to a "new member." The purchase was financed through a note from WSFS Bank, guaranteed by the SBA, for $1,547,800, along with seller-financed note of $300,000. The total purchase price included $1,500,000 for 100% ownership of the LLC and $500,000 for the assets of DryJect Inc. The debt and financing costs were allocated with 75% 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 to prospective franchisees as it provides insight into the financial transactions and debt obligations associated with the change in ownership of Dryject. Understanding the financing structure and the allocation of debt between Dryject LLC and DryJect Inc. Acquisition Corporation can help franchisees assess the financial stability and potential risks associated with the franchise.

The fact that the new member guaranteed the loan indicates a significant personal investment and commitment to the business. Additionally, the allocation of debt and assets between Dryject LLC and DryJect Inc. Acquisition Corporation suggests a specific business structure that may have implications for financial reporting and tax purposes. Prospective franchisees may want to inquire about the identity of the new member and the details of their role in the company's operations and strategic direction.

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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