What was the accumulated amortization for 360 Painting's trademarks as of December 31, 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 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Estimated Useful Life | Gross Amount | Accumulated Amortization | Net |
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. These 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 after deducting the accumulated amortization. The weighted average remaining useful life for these trademarks was 12.4 years.
For a prospective 360 Painting franchisee, understanding the amortization of trademarks is crucial as it reflects the declining value of these assets over time. Amortization is a non-cash expense that affects the net value of the intangible assets on the balance sheet. In this case, the trademarks, which include the "360° Painting" service mark and logo, are being amortized over 15 years, indicating the period over which 360 Painting expects to benefit from these assets.
The accumulated amortization represents the total amount of the trademark's value that has been expensed to date. The net amount shows the remaining value of the trademarks that 360 Painting can still utilize. This information can be useful for a franchisee in assessing the long-term value and stability of the 360 Painting brand. It also provides insight into how the franchisor manages and accounts for its intangible assets, which are vital for brand recognition and market presence.
It's important for potential franchisees to consider these figures in conjunction with other financial metrics to gain a comprehensive understanding of 360 Painting's financial health and brand strength. While the FDD provides this historical data, franchisees should also inquire about any future plans or strategies that could impact the value and use of these trademarks.