Can Dryject transfer or assign its interest in the agreement?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
es.
- 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 WSFS 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 an
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
Based on the 2025 Dryject Franchise Disclosure Document, Dryject can transfer or assign its interest in the agreement. Note 3 discusses the transfer of 100% of the ownership of the LLC in August 2016 to a new member. The purchase was financed with a note from WSFS 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 and $500,000 for the assets in DryJect Inc. The debt and cost of the financing is allocated 75% to the Company and 25% to DryJect Inc. Acquisition Corporation. The loan is collateralized by the assets of the Company and DryJect Inc. Acquisition Corporation. The note is guaranteed by the member.
This indicates that Dryject has the right to transfer ownership, which could have implications for franchisees. A change in ownership could bring new management styles, different priorities, or alterations to the franchise system. While the FDD doesn't explicitly detail the process Dryject must follow to ensure a smooth transition, it's important for prospective franchisees to understand that such changes are possible.
It is important for a potential franchisee to inquire about the conditions under which Dryject can transfer the agreement and what protections are in place for franchisees in such a scenario. Understanding these terms can help a franchisee assess the stability and long-term prospects of their investment with Dryject.