What were the distributions to members for 360 Painting in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1,789,095 | 19,498,265 | |
|---|---|---|
| Operating income | 1,803,801 | 2,446,795 |
| Interest income | (2,443) | (5,694) |
| Interest expense | 2,540,123 | 1,504,408 |
| Net income | $ (733,879) $ | 948,081 |
Premium Service Brands, LLC Consolidated Statements of Changes in Members' Equity For the Years Ended December 31, 2023 and 2022
| Members' Capital | Accumulated Deficit | Members' Deficit | |
|---|---|---|---|
| Balances at December 31, 2021 | $ (2,234,887) $ | (1,633,721) $ | (3,868,608) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the distributions to members in 2023 were $750,000. This figure is part of the consolidated financial statements for Premium Service Brands, LLC and Subsidiaries, which is 360 Painting's affiliate. The financial statements provide a summary of changes in members' capital and accumulated deficit.
Specifically, the table outlines the balances at December 31, 2023, showing a members' capital balance of $(3,765,800) and an accumulated deficit of $(1,419,519), resulting in a total members' deficit of $(5,185,319). The distributions to members directly impact these balances, reflecting a reduction in the company's capital.
For a prospective 360 Painting franchisee, this information provides insight into the financial management and capital structure of the parent company. While distributions to members are a normal part of business operations, franchisees may want to understand the context of these distributions in relation to the company's overall profitability and financial health. It's important to note that these figures are consolidated for Premium Service Brands, LLC and Subsidiaries, not solely for 360 Painting. Reviewing the complete financial statements and discussing these figures with the franchisor can provide a clearer picture of the company's financial performance and stability.