Does 360 Painting consolidate the financial statements of partially owned subsidiaries?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit B to this disclosure document contains the audited consolidated financial statements of our affiliate, Premium Service Brands, LLC and Subsidiaries, as of and for the years ended December 31, 2024, December 31, 2023 and December 31, 2022.
Our separate financial statements are not included in this disclosure document. Should we fail to fulfill our duties and obligations to our franchisees under their franchise agreements, Premium Service Brands, LLC absolutely and unconditionally guaranteesto assume those duties and obligations. Copies of the Guarantees of Performance by Premium Service Brands, LLC are included in Exhibit B.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting includes the consolidated financial statements of its affiliate, Premium Service Brands, LLC, and its subsidiaries. The consolidated financial statements are audited and cover the years ended December 31, 2024, December 31, 2023, and December 31, 2022.
This means that the financial performance of Premium Service Brands, LLC, and any companies it controls, are presented as a single economic unit. This gives a more comprehensive view of the overall financial health and performance of the group of companies related to 360 Painting.
It is important to note that the separate financial statements of 360 Painting itself are not included in the FDD. However, Premium Service Brands, LLC, provides an absolute and unconditional guarantee to fulfill the obligations of 360 Painting to its franchisees, should 360 Painting fail to do so. Copies of these guarantees are included as an exhibit.