Does Dryject have any subsidiaries whose financial information is consolidated in the financial statements?
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, 2024 and 2023, 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, 2024 and 2023, 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.
- Note 7 Transactions with Related Parties For the year ended December 31, the Company incurred management fees of $745,000 in 2024 and $710,000 in 2023 to DryJect Inc. Acquisition Corporation. At December 31, the Company had an account payable of $24,541 in 2024 and $95,314 in 2023 to DryJect Inc. Acquisition Corporation. The Company and DryJect Inc. Acquisition Corporation have a common owner.
- Note 6 Line of Credit The Company and DryJect Inc. Acquisition Corporation have a $500,000 revolving line of credit with WSFS Bank, with interest at 2% over prime, of which $120,141 was outstanding as of December 31, 2024 and $120,141 was outstanding as of December 31, 2023. The line of credit, for the first three years will be a revolving line of credit. As of August 2026, the outstanding balance shall be termed out in monthly payments of principal and interest and is due to expire in August 2033. The line of credit balance is reflected on the books of DryJect Inc. Acquisition Corporation since the proceeds are deposited directly into the Corporation and used for their expenses.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Dryject FDD, the financial statements provided are for DryJect Management, LLC, which the auditor describes as a single member LLC. The auditor's report explicitly states that they have audited the financial statements of DryJect Management, LLC, and their opinion is based solely on these statements. This suggests that the financial statements presented are not consolidated with any subsidiaries.
However, the FDD mentions DryJect Inc. Acquisition Corporation in related-party transaction disclosures. For example, in 2024, DryJect incurred management fees of $745,000 to DryJect Inc. Acquisition Corporation, and had an account payable of $24,541 to them. Both entities have a common owner. Additionally, DryJect and DryJect Inc. Acquisition Corporation share a $500,000 revolving line of credit, with the balance reflected on the books of DryJect Inc. Acquisition Corporation.
While DryJect Inc. Acquisition Corporation is mentioned, the auditor's report does not indicate that its financials are consolidated with DryJect Management, LLC. The financial statements only reflect the transactions between the two related parties. A prospective franchisee should confirm with Dryject whether consolidated financial statements exist and, if not, request additional financial information about DryJect Inc. Acquisition Corporation to gain a more complete understanding of the overall financial health of Dryject and its related entities.