What is the total long-term debt, less current portion, for Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ssuance costs as a reduction of the carrying amount of the debt rather than as an asset. Amortization of the debt issuance costs is reported as interest expense in the statement of income and member's capital.
Long-term debt allocated to the Company at December 31, consists of the following:
| 2024 | 99 | 2023 | ||
|---|---|---|---|---|
| Note payable to WSFS Bank, due in monthly installments of $13,034, interest at 2.5% above prime, due in August 2026 | $ | 265,230 | $ | 402,675 |
| Note payable to the former members of the LLC, due in monthly installments beginning in September 2018 of $2,629, interest at 5.0%, due in September 2028 | 114,320 | 142,700 | ||
| Total Notes Payable | 379,550 |
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the total long-term debt, less the current portion, was $193,962 as of December 31, 2024, and $372,752 as of December 31, 2023. This figure represents the debt remaining after subtracting both unamortized debt issuance costs and the portion of the debt due within the next year.
Specifically, the debt is related to notes payable to WSFS Bank and to the former members of the LLC. The note payable to WSFS Bank is due in monthly installments of $13,034, with interest at 2.5% above prime, and is due in August 2026. The note payable to the former members is due in monthly installments of $2,629, with interest at 5.0%, and is due in September 2028.
For a prospective Dryject franchisee, understanding the long-term debt is crucial as it provides insight into the company's financial obligations and stability. A lower long-term debt relative to assets may indicate a stronger financial position. Reviewing these figures over several years, as presented in the FDD, can help identify trends and assess the company's debt management practices. It is also important to consider the interest rates and payment terms associated with the debt, as these factors can impact the company's cash flow and profitability.