What was the amount of the term loan for 360 Painting as of December 31, 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| ---------- | ----------------- | ---- | ----------- |
|---|---|---|---|
| Prepaid commissions | $ 7,881,145 | $ | 7,062,651 |
| Notes receivable | 7,429 | 34,6 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the term loan as of December 31, 2023, was $12,293,250. This figure is part of the consolidated financial statements for Premium Service Brands, LLC and Subsidiaries, which includes 360 Painting. These statements provide a snapshot of the company's financial position at the end of 2023.
For a prospective franchisee, understanding the term loan amount is crucial as it reflects the financial obligations of the parent company, Premium Service Brands, LLC. While the parent company guarantees the obligations of 360 Painting to its franchisees, a high debt level could indicate potential financial strain. This could impact the resources available to support franchisees or lead to changes in the franchise system.
It is important to note that this is just one aspect of the financial health of Premium Service Brands, LLC. A potential franchisee should review the entire financial statement, including assets, liabilities, revenues, and expenses, to gain a comprehensive understanding. Additionally, they should consider trends over the three years presented (2022, 2023, and 2024) to assess the company's financial performance and stability.
Furthermore, a prospective 360 Painting franchisee should seek professional financial advice to interpret these financial statements in the context of their investment decision. Understanding the financial obligations of the parent company and how they might impact the franchise system is a key part of due diligence.