What was the amount of delayed draw term loans for 360 Painting in 2022?
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 company had $8,663,500 in delayed draw term loans in 2022. This figure reflects the amount of debt 360 Painting had outstanding under this specific type of loan arrangement at the end of that fiscal year.
For a prospective franchisee, this information provides insight into the financial structure and debt obligations of 360 Painting. Understanding the company's debt levels can be useful when evaluating the overall financial health and stability of the franchisor. A high level of debt might indicate higher financial risk, while a lower level could suggest a more stable financial position.
It's important to note that delayed draw term loans are a specific type of financing, and this figure is just one component of 360 Painting's total liabilities. Franchisees should consider this information in conjunction with other financial metrics and information provided in the FDD, such as revenue, expenses, and other debt obligations, to gain a comprehensive understanding of the franchisor's financial condition. Consulting with a financial advisor is recommended to fully assess the implications of 360 Painting's financial statements.