What secures the loan used to finance the purchase of Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Note 2 Goodwill The accounting of the purchase of 100% of the membership units in 2016 resulted in the recognition of goodwill of $1,509,159. The Company adopted ASC 350-20-35-63 which allows private companies the option of amortizing goodwill over ten years on a straight-line basis.
- Note 3 Transfer of membership In August 2016, 100% of the ownership of the LLC was transferred to a new member. The purchase was financed with a note from Wilmington Savings Fund Society (Bank), guaranteed by the SBA, for $1,547,800 and a seller financed note of $300,000. The purchase price was $1,500,000 for 100% of the ownership of the LLC
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, a loan from WSFS Bank (formerly Bryn Mawr Trust Company) financed the transfer of 100% membership to a new member in August 2016. The loan, guaranteed by the SBA, amounted to $1,547,800, alongside a seller-financed note of $300,000. The purchase price included $1,500,000 for the LLC ownership and $500,000 for DryJect Inc.'s assets.
The debt and associated financing costs were allocated with 75% to the Company and 25% to DryJect Inc. Acquisition Corporation. The loan itself is secured by the assets of both the Company and DryJect Inc. Acquisition Corporation. Additionally, the note is guaranteed by the member, adding another layer of security for the lender.
For a prospective Dryject franchisee, this indicates that the assets of the company and its acquisition corporation serve as collateral for the loan. Furthermore, the member's guarantee adds another level of security. This information is relevant to potential franchisees as it provides insight into the financial structure and obligations of Dryject.