What was the amount of revolving loans for 360 Painting as of December 31, 2024?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| ---------- | ----------------- | ---- | ----------- |
|---|---|---|---|
| Prepaid commissions | $ 7,881,145 | $ | 7,062,651 |
| Notes receivable | 7,429 | 34,628 | |
| Total other long-term assets | $ 7,888,574 | $ | 7,097,279 |
8. Long-term Debt
Long-term debt consisted of the foll
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 revolving loans as of December 31, 2024, was $1,200,000. In 2023, the revolving loans were listed as zero. This indicates that 360 Painting acquired revolving loans between the end of 2023 and the end of 2024.
Revolving loans, also known as revolving credit, allow the borrower to withdraw, repay, and re-borrow funds up to a credit limit. This type of loan provides flexibility for managing cash flow and unexpected expenses. For a prospective franchisee, this information provides insight into the financial structure of 360 Painting and its ability to access credit.
It's important to note that the FDD also states that as of December 31, 2024, all borrowing under the Amended Credit Facility were SOFR loans with effective interest rates ranging from 7.92% to 12.08% for term, delayed draw term, and revolving loans. The Amended Credit Agreement provides for an annual commitment fee of 0.5% per annum on the excess of the maximum available credit on the revolving loans over average borrowings. Additionally, substantially all of the assets of the company collateralize the Amended Credit Agreement. This indicates that the revolving loans are subject to interest and fees, and are secured by the company's assets.