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DryJect

DryJect Management, LLC
https://www.dryject.com
1-215-444-0310
307 Lincoln Avenue, Hatboro, Pennsylvania 19040

How much does DryJect cost?

Initial Investment Range

$46,100 to $301,950

Franchise Fee

$196,000

As a DryJect franchisee you will operate a patented, unique and exclusive natural grass aeration service.

Enjoy our partial free risk analysis below

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DryJect April 30, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 22, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
2
2
6

Disclosure of Franchisor's Financial Instability

High Risk

Explanation

DryJect Management, LLC (DryJect) explicitly warns that its financial condition “calls into question the franchisor's financial ability to provide services and support to you.” The audited financial statements confirm this, showing a negative net worth of ($123,606) for fiscal year 2024. This financial weakness could impair DryJect’s ability to support your business, invest in the brand, or even remain solvent, creating a significant risk for your investment.

Potential Mitigations

  • Your accountant must conduct a deep analysis of the franchisor's financial statements, including the negative equity and cash flow trends.
  • A business advisor should help you evaluate if the franchisor has sufficient resources to fulfill its support obligations without relying on new franchise sales.
  • Consult with your attorney regarding the implications of investing in a company with a disclosed weak financial condition.
Citations: Item 21, Exhibit H, Special Risks to Consider About This Franchise

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a high rate of franchisee turnover. In 2023, there were 5 units reacquired by the franchisor out of a starting base of 27 franchised outlets, representing an exit rate of over 18% for that year. This level of turnover may suggest potential issues within the system, such as challenges with profitability, franchisee dissatisfaction, or other systemic problems that could affect your own potential for success.

Potential Mitigations

  • It is critical to contact a significant number of the former franchisees listed in Item 20 to understand their reasons for leaving the system.
  • Your accountant should help you analyze the turnover data across all three years to assess the stability of the franchise network.
  • Discuss the high number of franchisor reacquisitions with your attorney to understand the potential implications.
Citations: Item 20

Rapid System Growth

Low Risk

Explanation

This risk was not identified in the FDD package. The data in Item 20 indicates the franchise system has been shrinking or stagnant over the last three years, not growing rapidly. A franchisor expanding too quickly can strain its ability to provide adequate support to new franchisees.

Potential Mitigations

  • A business advisor can help you assess whether the franchisor's current size and growth rate align with a healthy support structure.
  • During due diligence calls, you should ask existing franchisees if they feel the franchisor's support systems have been strained or improved over time.
  • Your attorney should review the franchisor's obligations in Item 11 to ensure they are clearly defined regardless of system size.
Citations: Not applicable

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified in the FDD package. The franchisor and its predecessors have been involved in the business since 2001, as disclosed in Item 1. Therefore, it is not a new or unproven system, although its complex history presents other considerations.

Potential Mitigations

  • You should still have your attorney and business advisor review the franchisor's long history, including the performance of its predecessors.
  • Speaking with long-term franchisees can provide insight into the evolution and stability of the business model over time.
  • Your accountant can review financial statements from multiple years to assess the long-term financial trajectory of the company.
Citations: Not applicable

Possible Fad Business

Low Risk

Explanation

This risk was not identified in the FDD package. The business of providing patented turf aeration services, primarily to golf courses and sports fields, is part of an established and ongoing industry. It does not appear to be based on a short-term trend or fad.

Potential Mitigations

  • A business advisor can help you research the long-term stability and demand within the turf management industry.
  • You should assess the technology's competitive advantage and whether it is susceptible to being quickly outdated.
  • When speaking with franchisees, ask about the consistency of customer demand over several years.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

The management team described in Item 2 appears to be very small, with only two executives listed. While these individuals may be experienced, a lean management structure for a national franchise system could pose a risk. It may strain the franchisor's ability to provide consistent, high-quality, and timely support to all franchisees, especially as the system's needs evolve.

Potential Mitigations

  • When speaking with current franchisees, specifically inquire about the quality, depth, and responsiveness of the support provided by the management team.
  • Your business advisor can help you assess if the current management structure is adequate for the size and needs of the franchise system.
  • Your attorney should review the support obligations outlined in Item 11 to determine if they are specific and enforceable.
Citations: Item 2

Private Equity Ownership

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 indicates the franchise is owned and managed by its principal, John Paddock, not by a private equity firm. Therefore, the specific risks associated with a PE firm's typical investment horizon and focus on short-term returns do not appear to be present.

Potential Mitigations

  • It is still prudent to have your attorney review Item 1 to confirm the ownership structure and identify any majority stakeholders.
  • Your business advisor can help you understand the pros and cons of different ownership structures, including private ownership.
  • Asking the franchisor about long-term goals for the company can provide insight into their operational philosophy.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified in the FDD package. Item 1 describes the franchisor's affiliates, such as the equipment supplier, but does not indicate the existence of a parent company whose financials or identity are being withheld. The corporate structure appears to be disclosed.

Potential Mitigations

  • Your attorney should still confirm the corporate structure and the relationship between all affiliated entities mentioned in Item 1.
  • An accountant should review any financial guarantees or obligations between the franchisor and its affiliates.
  • Asking the franchisor to draw an organization chart can help clarify relationships between all related companies.
Citations: Not applicable

Predecessor History Issues

Medium Risk

Explanation

Item 1 details a complex business history involving multiple predecessors, mergers, and asset transfers dating back to 2001. While this history is disclosed, its complexity can make it difficult to assess the system's historical performance and stability. You face a risk that inherited liabilities or unresolved issues from predecessor entities could affect the current operation.

Potential Mitigations

  • A franchise attorney should carefully map out the timeline of predecessors and transfers to understand the company's lineage.
  • If possible, your business advisor should assist you in researching the history and reputation of the predecessor companies.
  • Ask long-term franchisees about their experiences during the transitions between the different corporate entities.
Citations: Item 1

Pattern of Litigation

Low Risk

Explanation

This risk was not identified in the FDD package. Item 3 states that no litigation is required to be disclosed. This suggests an absence of recent, material legal disputes with franchisees, suppliers, or government agencies, which is a positive indicator.

Potential Mitigations

  • Your attorney can conduct independent public record searches to verify the litigation disclosures in Item 3.
  • When speaking with current and former franchisees, you should still inquire about any legal disputes they may be aware of.
  • Understanding the dispute resolution process in Item 17 is important, as it dictates how future conflicts would be handled.
Citations: Not applicable
2

Disclosure & Representation Risks

Total: 15
4
0
11

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
5
3
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

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4

Legal & Contract Risks

Total: 16
11
2
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
3
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
7
2
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
2
2
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
5
4
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
14
2
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 2
2
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.