What was the total purchase price for 100% ownership of the Dryject LLC and the assets in DryJect Inc.?
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, in August 2016, 100% ownership of Dryject LLC was transferred to a new member. The total purchase price for this transaction was $1,500,000 for 100% ownership of the LLC and an additional $500,000 for the assets in DryJect Inc. Therefore, the combined purchase price totaled $2,000,000.
The purchase was financed through a loan from WSFS Bank, guaranteed by the SBA, amounting to $1,547,800, and a seller-financed note of $300,000. The debt and associated financing costs were allocated with 75% to the Company (Dryject Management, LLC) and 25% to DryJect Inc. Acquisition Corporation. The loan was secured by the assets of both the Company and DryJect Inc. Acquisition Corporation, and the note was guaranteed by the member.
For a prospective Dryject franchisee, this information provides insight into the financial structuring and valuation of the company in 2016. While this historical transaction doesn't directly impact the costs of acquiring a franchise today, it offers a glimpse into the company's financial dealings and how previous ownership transitions were handled. Understanding the company's financial history can be a useful part of due diligence before investing in a Dryject franchise.