What was the total settlement amount Dryject received from the licensee in 2018?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
xpenses of $45,090 in 2022 and $24,649 in 2021 to DryJect Inc. Acquisition Corporation. At December 31, the Company had an account payable of $195,817 in 2022 and $173,128 in 2021 to DryJect Inc. Acquisition Corporation. The Company and DryJect Inc. Acquisition Corporation have a common owner.
- Note 9
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, in March 2016, Dryject filed a lawsuit against a licensee for breach of contract and misappropriation of trade secrets. The suit was settled in 2018 for a total of $70,000. However, the full amount was not paid in 2018.
Specifically, Dryject received $10,000 in 2018, with the remaining $60,000 to be paid in installments of $15,000 each January from 2019 through 2022. This payment plan means that while the settlement was reached in 2018, the revenue was recognized over a period of several years.
For a prospective franchisee, this detail illustrates Dryject's approach to handling legal disputes and its potential impact on the company's financials. It also shows that Dryject is willing to pursue legal action when necessary to protect its interests, but also willing to settle for an amount to be paid over time.