What was the current portion of 360 Painting's lease liability in 2024?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Charlottesville, Virginia
April 22, 2025
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 943,020 $ | 722,074 |
| Accounts receivable, net | 3,218,426 | 2,838,106 |
| Prepaid expenses and other current assets | 3,666,212 | 2,486,419 |
| Total current assets | 7,827,658 | 6,046,599 |
| Property and equipment, net | 762,462 | 728,024 |
| Right-of-use lease asset, net | 1,476,728 | 1,633,661 |
| Intangible assets, net | 11,433,105 | 12,925,497 |
| Goodwill | 7,068,689 | 7,068,689 |
| Other assets | 7,888,574 | 7,097,279 |
| Total assets | $ 36,457,216 $ | 35,499,749 |
| Liabilities and Members' Deficit | ||
| Current liabilities | ||
| Accounts payable | $ 434,745 $ | 435,883 |
| Accrued and other liabilities | 3,365,005 | 3,368,024 |
| Deferred revenue, current | 2,041,424 | 1,860,040 |
| Lease liability, current portion | 150,635 | 124,701 |
| Current maturities of long-term debt | 609,375 | 599,500 |
| Total current liabilities | 6,601,184 | 6,388,148 |
| Long-term debt, net | 20,436,661 | 19,918,725 |
| Lease liability, noncurrent porti |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the current portion of their lease liability was $150,635 in 2024. This represents the amount of lease obligations due within the next year.
For a prospective franchisee, understanding the lease liability is crucial as it reflects 360 Painting's financial obligations related to leased properties or equipment. The current portion indicates the short-term financial commitment 360 Painting must meet. A significant increase in this liability could signal potential financial strain, while a stable or decreasing amount might suggest better financial management.
It's also useful to compare the current lease liability with the noncurrent portion, which was $1,416,676 in 2024. This provides a more complete picture of 360 Painting's total lease obligations, both short-term and long-term. Reviewing these figures in conjunction with revenue and other liabilities can help potential franchisees assess the overall financial health and stability of 360 Painting.