What was the total purchase price for 100% of the 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% of the ownership of Dryject LLC was transferred to a new member. The total purchase price for this transfer, including the assets of DryJect Inc., was $2,000,000. Specifically, $1,500,000 was allocated to the ownership of the LLC, and $500,000 was for the assets of DryJect Inc.
The purchase was financed through a combination of debt. A note from WSFS Bank, guaranteed by the SBA, provided $1,547,800, and a seller-financed note accounted for the remaining $300,000. The allocation of the debt and financing costs was structured with 75% attributed to the Company (Dryject Management, LLC) and 25% to DryJect Inc. Acquisition Corporation.
The loan obtained to finance this purchase is collateralized by the assets of both Dryject Management, LLC and DryJect Inc. Acquisition Corporation. Additionally, the note is guaranteed by the member, indicating a personal commitment to securing the debt. This financial restructuring and the details of the purchase are outlined in the notes to the financial statements within the FDD, providing transparency regarding the company's financial obligations and asset allocation.