As of December 31, 2023, how was 360 Painting's only facility lease classified?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
s in compliance with these covenants. The Credit Agreement expires on September 17, 2026.
As of December 31, 2023 and 2022, $239,258 and $0 of interest was included in accrued liabilities in the consolidated balance sheets, respectively.
Future maturities of long-term debt as of December 31, 2023 are as follows:
| 2024 | $ 599,500 |
|---|---|
| 2025 | 783,000 |
| 2026 | 19,386,125 $ 20,768,625 |
9. Leases
The Company currently has one lease relating to its corporate headquarters. The Company recognized operating lease expense of $340,260
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the company, referring to Premium Service Brands, LLC, had one lease relating to its corporate headquarters. As of December 31, 2023, this lease was classified as an operating lease. The company recognized an operating lease expense of $340,260 for the year ended December 31, 2023.
Cash payments made during the year totaled $309,976 and were presented within cash outflows from operating activities. The discount rate used to determine the lease liability was 12%.
Future payments due under the operating lease as of December 31, 2023, are detailed further in the FDD, but not provided in this excerpt. This information is relevant for prospective franchisees as it provides insight into the financial obligations and lease management practices of 360 Painting's parent company.