Does the Dryject FDD include balance sheets for any entities other than Dryject Management, LLC?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
I have audited the accompanying financial statements of DryJect Management, LLC (a single member LLC), which comprise the balance sheets as of December 31, 2023 and 2022, and the related statements of income and member's capital, and cash flows for the years then ended, and the related notes to the financial statements.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of DryJect Management, LLC as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, the financial statements provided are specifically for DryJect Management, LLC. The independent auditor's reports explicitly state that the audit was conducted on the financial statements of DryJect Management, LLC, covering balance sheets, statements of income and member's capital, and cash flows for the years ended December 31, 2023 and 2022, and December 31, 2024 and 2023.
While the FDD includes financial information related to DryJect Inc. Acquisition Corporation, it does not present full balance sheets for this entity. For example, Note 6 discusses a $500,000 line of credit shared between DryJect Management, LLC and DryJect Inc. Acquisition Corporation, with the balance reflected on the books of DryJect Inc. Acquisition Corporation. Additionally, Note 7 details transactions between the two companies, such as management fees and accounts payable. Note 3 also mentions the debt and cost of financing being allocated between DryJect Management, LLC and DryJect Inc. Acquisition Corporation.
Therefore, prospective franchisees should be aware that the complete financial picture of DryJect Inc. Acquisition Corporation is not provided in the same detailed format as that of DryJect Management, LLC. If a franchisee wants to review the financial standing of Dryject Inc. Acquisition Corporation, they should ask Dryject for those specific financial statements.