Does Dryject maintain an allowance for credit losses on accounts receivable?

According to Dryject's 2025 Franchise Disclosure Document, the company carries its accounts receivable at cost and evaluates them periodically. If necessary, Dryject establishes an allowance for credit losses. However, as of December 31, 2023, and December 31, 2022, Dryject did not have an allowance for credit losses.

For a prospective franchisee, this indicates that Dryject has not experienced significant issues with collecting its accounts receivable in the recent past. The absence of an allowance for credit losses suggests that Dryject's customers are generally paying their bills on time, and Dryject does not anticipate significant losses from uncollectible accounts.

However, it is important to note that this is based on past performance and may not be indicative of future results. Economic conditions or changes in Dryject's customer base could lead to an increase in uncollectible accounts in the future. It would be prudent for a prospective franchisee to inquire about Dryject's credit policies and procedures, as well as its historical experience with bad debts, to better assess the potential risk of credit losses.