What was the carrying value of goodwill for 360 Painting as of December 31, 2022?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
llows:
| 2025 | $ 1,492,392 |
|---|---|
| 2026 | 1,492,392 |
| 2027 | 1,492,392 |
| 2028 | 1,491,411 |
| 2029 | 1,487,316 |
| Thereafter | 3,977,202 $ 11,433,105 |
Goodwill
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the carrying value of goodwill as of December 31, 2022, was $5,433,689. Goodwill, in this context, represents the excess of acquisition costs over the fair value of acquired assets and liabilities, including specifically identified intangible assets.
It is important to note that goodwill is not amortized but is tested for impairment annually or when events suggest its value may be compromised. 360 Painting conducts impairment testing by assessing qualitative factors to determine if the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that the carrying value exceeds the fair value, a quantitative impairment test is performed.
For a prospective 360 Painting franchisee, understanding goodwill and its potential impairment is crucial. Impairment charges can affect the financial performance of the franchisor, Premium Service Brands, LLC, which in turn could impact the support and resources available to franchisees. Reviewing the financial statements and understanding the factors that could lead to impairment can provide valuable insights into the financial health and stability of the 360 Painting franchise system.