What was the balance of goodwill for 360 Painting as of December 31, 2021?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
2022, respectively.
Estimated amortization expense for the subsequent five years and thereafter is as follows:
| 2024 | $ 1,492,392 | |------------|------------------| | 2025 | 1,492,392 | | 2026 | 1,492,392 | | 2027 | 1,492,392 | | 2028 | 1,491,983 | | Thereafter | 5,463,946 $ 12,925,497 | Goodwill
Changes in the net carrying value of goodwill for the years ended December 31, 2
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the balance of goodwill as of December 31, 2021, was $4,830,387. Goodwill, in accounting terms, represents the intangible assets acquired in a business combination that are not separately identifiable. This can include things like brand reputation, customer relationships, and intellectual property.
For a prospective 360 Painting franchisee, understanding the goodwill balance can provide insight into the overall financial health and acquisition strategy of the parent company, Premium Service Brands, LLC. A significant goodwill balance may indicate that the company has grown through acquisitions, as seen with the acquisition of Rooterman for $739,207 and the contingent consideration of House Doctors for $33,819.
However, it's also important to note that goodwill is subject to impairment, as demonstrated by the impairment of Renew Crew's goodwill by $169,724. Impairment occurs when the fair value of an acquired asset decreases, requiring the company to write down the value of goodwill on its balance sheet. This can impact the overall financial performance of the company and, by extension, the stability of the 360 Painting franchise system. Therefore, franchisees should monitor the financial statements for any significant changes in goodwill and related impairments, as these could signal potential risks or challenges within the broader organization.