Over how many years does Dryject amortize goodwill?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ly based upon such periodic evaluation.
Concentrations of Credit Risk - The Company maintains its cash balances at a financial institution where balances are insured by the Federal Deposit Insurance Corporation up to $250,000. At December 31, 2024, the Company had no uninsured cash bal
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the company amortizes goodwill over a period of ten years. This accounting practice stems from the purchase of 100% of the membership units in 2016, which resulted in the recognition of goodwill amounting to $1,509,159.
The document states that Dryject adopted ASC 350-20-35-63, a guideline that allows private companies the option to amortize goodwill on a straight-line basis over ten years. This means that the initial goodwill amount is evenly expensed over this ten-year period, impacting the company's financial statements annually.
For a prospective franchisee, understanding how Dryject handles goodwill amortization can provide insight into the company's financial management and accounting practices. It also offers a clearer picture of the company's financial performance over time, as the amortization expense will affect the reported profits during those ten years. This information is crucial for making informed investment decisions and assessing the overall financial health of the Dryject franchise system.