When is the note payable to the former members of the LLC due for Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ssuance costs as a reduction of the carrying amount of the debt rather than as an asset. Amortization of the debt issuance costs is reported as interest expense in the statement of income and member's capital.
Long-term debt allocated to the Company at December 31, consists of the following:
| 2024 | 99 | 2023 | ||
|---|---|---|---|---|
| Note payable to WSFS Bank, due in monthly installments of $13,034, interest at 2.5% above prime, due in August 2026 | $ | 265,230 | $ | 402,675 |
| Note payable to the former members of the LLC, due in monthly installments beginning in September 2018 of $2,629, interest at 5.0%, due in September 2028 | 114,320 | 142,700 | ||
| Total Notes Payable | 379,550 |
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the note payable to the former members of the LLC is due in September 2028. This note requires monthly installments of $2,629, with interest at 5.0%, beginning in September 2018.
As of December 31, 2024, the balance of this note was $114,320, and as of December 31, 2023, the balance was $142,700. This indicates that Dryject has been consistently making payments towards this note.
For a prospective franchisee, this information provides insight into the financial obligations Dryject has undertaken. Understanding the terms and payment schedule of this note can help a franchisee assess the financial stability and management of Dryject. It is also important to note that this debt was part of the financing when 100% ownership of the LLC was transferred to a new member in August 2016, highlighting a significant transaction in the company's history.