What was the total amount of notes payable for Dryject as of December 31, 2022?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
stments with an original maturity 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 | $ | 46,681 | $ | 49,369 |
|---|---|---|---|---|
| Income taxes | $ | S |
- Note 7 Line of Credit The Company and DryJect Inc. Acquisition Corporation have a $300,000 revolving line of credit with WSFS Bank (formerly Bryn Mawr Trust Company), with interest at 2.5% over prime, of which $134,525 was outstanding as of December 31, 2022 and $50,000 was outstanding as of December 31, 2021. The line of credit is due to expire in August 2023. The line of credit balance is reflected on the books of DryJect Inc. Acquisition Corporation since the proceeds are deposited directly into DryJect Inc. Acquisition Corporation and used for their expenses.
- Note 8 Transactions with Related Parties For the year ended December 31, the Company incurred management fees of $655,000 in 2022 and $680,351 in 2021 and reimbursed expenses of $45,090 in 2022 and $24,649 in 2021 to DryJect Inc. Acquisition Corporation.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, Dryject Inc. Acquisition Corporation had a $300,000 revolving line of credit with WSFS Bank, with an interest rate of 2.5% over prime. As of December 31, 2022, the outstanding balance on this line of credit was $134,525. The line of credit was set to expire in August 2023. It is important to note that this line of credit balance is reflected on the books of DryJect Inc. Acquisition Corporation because the proceeds are directly deposited into that corporation and used for its expenses.
Additionally, the purchase of the LLC in August 2016 was financed with a note from WSFS Bank for $1,547,800 and a seller financed note of $300,000. The debt and cost of financing are allocated 75% to the company and 25% to DryJect Inc. Acquisition Corporation.
Therefore, as a prospective franchisee, it's crucial to understand the financial relationship between Dryject Management, LLC and DryJect Inc. Acquisition Corporation, especially regarding the allocation of debt and expenses. Further due diligence is needed to understand the total notes payable for Dryject as of December 31, 2022.