What was the amount of the current portion subtracted from the total debt of 360 Painting in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ssets consisted of the following as of December 31, 2023 and 2022:
| 2023 | 2022 | |
|---|---|---|
| Prepaid commissions | $ 7,062,651 | $ 5,458,508 |
| Notes receivable | 34,628 | 74,460 |
| Total other long-term assets | $ 7,097,279 | $ 5,532,968 |
8. Long-term Debt
Long-term debt consisted of the following as of December 31, 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the current portion subtracted from the total debt in 2023 was $599,500. This figure is used in calculating the long-term debt, net, which was $19,918,725 in 2023. The current portion represents the amount of long-term debt due within the next year.
For a prospective 360 Painting franchisee, understanding the debt structure of the franchisor is crucial. The current portion of long-term debt indicates the immediate debt obligations 360 Painting needs to meet. A high current portion relative to total debt could suggest potential liquidity issues, while a lower amount might indicate better financial stability.
It is important to note that this figure is part of a larger financial picture. Franchisees should review the complete financial statements, including the balance sheet, income statement, and cash flow statement, to assess the overall financial health of 360 Painting. Additionally, comparing these figures across multiple years can reveal trends and provide a more comprehensive understanding of the franchisor's financial performance.
Prospective franchisees should consult with a financial advisor to fully understand the implications of 360 Painting's debt structure and how it might affect the franchisor's ability to support its franchisees. Understanding the franchisor's financial obligations can help franchisees make informed decisions about their investment.