What interest rate does Dryject pay on its line of credit with Wilmington Savings Fund Society?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
stments with an original maturity of three months or less to be cash equivalents. For the year ended December 31, the amounts paid for income taxes and interest were as follows:
| Interest | $ | 46,681 | $ | 49,369 |
|---|---|---|---|---|
| Income taxes | $ | S |
- Note 7 Line of Credit The Company and DryJect Inc. Acquisition Corporation have a $300,000 revolving line of credit with WSFS Bank (formerly Bryn Mawr Trust Company), with interest at 2.5% over prime, of which $134,525 was outstanding as of December 31, 2022 and $50,000 was
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject has a line of credit with Wilmington Savings Fund Society (WSFS Bank). The interest rate on this line of credit is 2.5% over the prime rate, as detailed in Note 7. As of December 31, 2022, the outstanding balance on this line of credit was $134,525, and as of December 31, 2021, it was $50,000. The line of credit was scheduled to expire in August 2023.
It is important to note that this line of credit is held jointly by Dryject and DryJect Inc. Acquisition Corporation. The balance of the line of credit is reflected on the books of DryJect Inc. Acquisition Corporation because the proceeds are deposited directly into that corporation and used for its expenses. This arrangement means that while Dryject benefits from the credit line, the financial responsibility and accounting are handled through DryJect Inc. Acquisition Corporation.
Prospective franchisees should be aware of these financial arrangements, as they provide insight into Dryject's financial management and relationships with related entities. Understanding the terms of the line of credit, including the interest rate and expiration date, can help franchisees assess the financial stability and planning of the franchisor. Additionally, the fact that the debt is shared with another entity highlights the importance of understanding the full scope of Dryject's financial obligations and inter-company transactions.