Does the table present any edge cases or unusual scenarios related to Dryject's business relationships?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
turity of three months or less to be cash equivalents. For the year ended December 31, the amounts paid for income taxes and interest were as follows:
| Interest | $ | 43,844 | $ | 58,812 | |
|---|---|---|---|---|---|
| Income taxes | $ | - 4 | S | = |
- 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.
- 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 8 Reclassifications Certain amounts in the prior year financial statements have been reclassified for comparative purposes to conform with the presentation in the current year financial statements.
- Note 9 Subsequent Events The Company has evaluated subsequent events through March 24, 2025, which is the date the financial statements were available to be issued.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, there are several notable aspects of Dryject's business relationships that could be considered unusual. Dryject Management, LLC has significant transactions with DryJect Inc. Acquisition Corporation, an entity with a common owner. These transactions include management fees of $745,000 in 2024 and $710,000 in 2023 paid by the Company to DryJect Inc. Acquisition Corporation. Additionally, Dryject Management, LLC had accounts payable to DryJect Inc. Acquisition Corporation of $24,541 in 2024 and $95,314 in 2023. These related-party transactions suggest a close financial relationship between the two entities.
Another notable point is the line of credit shared between DryJect Management, LLC and DryJect Inc. Acquisition Corporation. They have a $500,000 revolving line of credit with WSFS Bank, with interest at 2% over prime. As of December 31, 2024, $120,141 was outstanding. The line of credit is reflected on the books of DryJect Inc. Acquisition Corporation because the proceeds are deposited directly into that corporation and used for its expenses. This arrangement indicates that DryJect Inc. Acquisition Corporation handles the debt, even though DryJect Management, LLC is also a party to the credit line.
In 2016, 100% of the ownership of DryJect Management, LLC was transferred to a new member, financed by 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 the ownership and $500,000 for the assets in DryJect Inc. The debt and financing costs are allocated 75% to DryJect Management, LLC and 25% to DryJect Inc. Acquisition Corporation, with the loan collateralized by the assets of both entities and guaranteed by the member. This complex financial structure and shared debt obligations between related entities could be seen as an unusual arrangement that prospective franchisees should carefully consider.