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In what year was 100% of the ownership of the Dryject LLC transferred to a new member?

Q: In what year was 100% of the ownership of the Dryject LLC transferred to a new member?

lances. - 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)

Dryject Franchise · 2025 FDD

Answer from 2025 FDD Document

lances.

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, 100% of the ownership of the LLC was transferred to a new member in August 2016. The purchase was financed through a note from WSFS Bank, guaranteed by the SBA, for $1,547,800, along with a seller-financed note of $300,000. The total purchase price included $1,500,000 for the LLC ownership and $500,000 for the assets of DryJect Inc.

This information is relevant to potential franchisees as it provides insight into the financial history and ownership changes within the Dryject organization. Understanding how the company was financed and the valuation placed on its assets during the transfer of ownership can help franchisees assess the financial stability and investment decisions of the company.

The debt and financing costs associated with the purchase were allocated, with 75% assigned to the Company and 25% to DryJect Inc. Acquisition Corporation. The loan is secured by the assets of both the Company and DryJect Inc. Acquisition Corporation, and the note is guaranteed by the member. This allocation of debt and collateralization structure is important for franchisees to understand, as it reflects the financial interdependencies within the Dryject corporate structure.

Overall, the details surrounding the transfer of ownership in 2016 offer a glimpse into the financial structuring and historical investment decisions of Dryject, which can be valuable for prospective franchisees evaluating the franchise opportunity.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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