What was the amount of the delayed draw term loans for 360 Painting as of December 31, 2024?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| Term loan | $ 11,864,500 $ | |
| Delayed draw term loans | 8,140,875 | 8,475,375 |
| Revolving loans | 1,200,000 | - |
| Total debt | 21,205,375 | 20,768,625 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the amount of delayed draw term loans as of December 31, 2024, was $8,140,875. This figure reflects the outstanding balance of loans that 360 Painting has drawn from a delayed draw term loan facility. These loans are part of the company's overall debt structure, which also includes term loans and revolving loans.
The delayed draw term loan allows 360 Painting to borrow funds over a specified period, rather than receiving the entire loan amount upfront. This type of loan can be useful for financing acquisitions or other strategic investments, as it provides flexibility in accessing capital when needed. The balance of $8,140,875 represents the portion of the delayed draw term loan that was still outstanding as of the end of 2024.
Prospective franchisees should note that 360 Painting's parent company, Premium Service Brands, LLC, has significant long-term debt, which could impact the financial stability of the company and its ability to support its franchisees. While the company was in compliance with its debt covenants as of December 31, 2024, changes in economic conditions or the company's performance could affect its ability to meet these obligations in the future. Franchisees should carefully review the financial statements and consider the potential risks associated with the company's debt levels.
Understanding the debt structure of the franchisor is crucial for potential franchisees. It provides insight into the financial health and stability of the company. High debt levels can indicate potential risks, while effective management of debt can support growth and stability. Therefore, prospective 360 Painting franchisees should analyze these figures in the context of the company's overall financial performance and future plans.