What is the interest rate on Dryject's note payable to the Wilmington Savings Fund Society (Bank)?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
| Note payable to the Wilmington Savings Fund | s | 402,675 | $ | 527,327 |
|---|---|---|---|---|
| Society (Bank), due in monthly | ||||
| installments of $13,034, interest at 2.5% | ||||
| above prime, due in August 2026 |
- Note 6 Line of Credit The Company and DryJect Inc. Acquisition Corporation have a $500,000 revolving line of credit with Wilmington Savings Fund Society (Bank), with interest at 2% over prime, of which $120,141 was outstanding as of December 31, 2023 and $134,525 was outstanding as of December 31, 2022. The line of credit, for the first three years will be a revolving line of credit. As of August 2026, the outstanding balance shall be termed out in monthly payments of principal and interest and is due to expire in August 2033. The line of credit balance is reflected on the books of DryJect Inc. Acquisition Corporation since the proceeds are deposited directly into the Corporation and used for their expenses.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the interest rate on the note payable to Wilmington Savings Fund Society (Bank) is 2.5% above the prime rate. The note is payable in monthly installments of $13,034 and is due in August 2026.
This information is relevant to potential Dryject franchisees as it provides insight into the company's financial obligations and debt structure. Understanding the interest rate and repayment terms associated with Dryject's debt can help franchisees assess the financial stability of the company.
It's important to note that the interest rate is variable, as it is tied to the prime rate, which can fluctuate over time. This means that Dryject's interest expense on this note could increase or decrease depending on changes in the prime rate. Prospective franchisees should consider this when evaluating the company's financial statements and projections.
Additionally, Dryject also has a $500,000 revolving line of credit with Wilmington Savings Fund Society (Bank), with interest at 2% over prime. As of December 31, 2023, $120,141 was outstanding, and as of December 31, 2022, $134,525 was outstanding. The line of credit, for the first three years will be a revolving line of credit. As of August 2026, the outstanding balance shall be termed out in monthly payments of principal and interest and is due to expire in August 2033.