What amount of liabilities were assumed in the 360 Painting financial statement?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
eligibility requirements. The plan provides for matching contributions of 100% of the first 3% of employee contributions, 50% of the remaining employee contributions, up to 4% of the participating employees contributions. The Company's contributions to the plan totaled $179,957 and $151,049 for the years ended December 31, 2023 and 2022, respectively.
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GUARANTEE OF PERFORMANCE FTC
For value received, Premium Service Brands, LLC, a Delaware limited liability corporation located at 126 Garrett Street, Suite J, Charlottesville, VA 22902 (the "Guarantor"), absolutely and unconditionally guarantees to assume the duties and obligations of 360 Painting, LLC, a limited liability corporation located at 126 Garrett Street, Suite J, Charlottesville, VA 22902 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for 360 Painting includes a guarantee from Premium Service Brands, LLC, which ensures that Premium Service Brands, LLC will assume the duties and obligations of 360 Painting under its franchise registration in each state where the franchise is registered and under its Franchise Agreement. This guarantee remains in effect until all obligations of 360 Painting are satisfied or the liability of 360 Painting to its franchisees has been completely discharged.
According to the 2025 FDD, Premium Service Brands, LLC guarantees to assume the duties and obligations of 360 Painting, LLC under its franchise registration and Franchise Agreement. This guarantee continues until all such obligations of 360 Painting, LLC are satisfied or the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs.
The guarantee by Premium Service Brands, LLC is designed to provide financial security to 360 Painting franchisees. It ensures that even if 360 Painting, LLC faces financial difficulties, Premium Service Brands, LLC will step in to fulfill the franchisor's obligations. This reduces the risk for franchisees, as they have an assurance that the essential services and support promised by 360 Painting will continue to be provided.
While the guarantee provides a level of security, prospective franchisees should still carefully review the financial statements of Premium Service Brands, LLC, as well as 360 Painting, to fully understand the financial health of both entities. It is also important to understand the specific duties and obligations that Premium Service Brands, LLC is guaranteeing to assume, as outlined in the franchise agreement and related documents.