What is the purpose of presenting Dryject Management, LLC balance sheets in the FDD?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
I have audited the accompanying financial statements of DryJect Management, LLC (a single member LLC), which comprise the balance sheets as of December 31, 2023 and 2022, and the related statements of income and member's capital, and cash flows for the years then ended, and the related notes to the financial statements.
In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of DryJect Management, LLC as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the balance sheets of DryJect Management, LLC are included as part of the company's audited financial statements. The purpose of these financial statements, as stated in the Independent Auditor's Report, is to present fairly the financial position of DryJect Management, LLC as of December 31, 2023 and 2022. The report also includes the related statements of income and member's capital, and cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States of America.
The inclusion of these audited financial statements provides prospective Dryject franchisees with an overview of the company's financial health and stability. The auditor, Roger K. Stein, CPA LLC, has the responsibility to express an opinion on whether the financial statements present fairly the company's financial position, results of operations, and cash flows in conformity with generally accepted accounting principles (GAAP). This opinion adds credibility to the financial information presented.
Furthermore, the financial statements include notes that provide additional details on significant aspects of DryJect's financial position, such as goodwill, debt, and transactions with related parties. For example, Note 3 discusses the transfer of membership in August 2016 and the financing involved, including a note from Wilmington Savings Fund Society (Bank) guaranteed by the SBA for $1,547,800 and a seller-financed note of $300,000. Note 6 describes a $500,000 revolving line of credit with WSFS Bank. These disclosures help potential franchisees understand the financial obligations and relationships of DryJect Management, LLC.
By presenting these audited financial statements, Dryject aims to provide transparency and build trust with potential franchisees. Reviewing these statements and notes is a crucial step for anyone considering investing in a Dryject franchise, as it allows them to assess the financial risks and opportunities associated with the franchise.