What was the accumulated amortization for 360 Painting's trademarks in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
314,840 | | 13,402 | | 671,056 | | (231,173) | | 439,883 | | |
Depreciation and amortization expense related to property and equipment recognized in the consolidated statement of operations was $348,175 and $152,162 for the years ended December 2023 and 2022, respectively.
6. Intangible Assets and Goodwill
Intangible Assets
Intangible assets consisted of the following as of December 31, 2023 and 2022:
| 2023 |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the accumulated amortization for trademarks as of December 31, 2023, was $220,600. The trademarks have an estimated useful life of 15 years. The gross amount of the trademarks was valued at $1,656,200, resulting in a net amount of $1,435,600. The weighted average remaining useful life for the trademarks was 12.4 years.
Amortization is the systematic reduction of the book value of an intangible asset, such as trademarks, over its useful life. This accounting practice reflects the consumption of the asset's value over time. For a 360 Painting franchisee, understanding these figures can be important for assessing the financial health and stability of the franchisor.
The accumulated amortization indicates how much of the trademark's original value has already been expensed. A higher accumulated amortization relative to the gross amount might suggest that the trademark is nearing the end of its useful life, although in this case, the trademarks still retain a significant portion of their value. The remaining useful life provides an estimate of how much longer the trademark will continue to provide value to the company.
Prospective franchisees should consider these figures as part of their due diligence, evaluating the overall financial position of 360 Painting and the value of its intangible assets. While trademarks are not typically a major concern, consistent and transparent financial reporting is a positive sign.