What is the estimated amortization expense for 360 Painting's intangible assets for the year 2026?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Estimated Useful Life | Gross Amount | Accumulated Amortization | Net Amount | Weighted Average Remaining Useful Life | ||||
| Franchise relationships Trademarks Intangible assets | 10 years 15 years | $ $ | 13,763,800 1,656,200 15,420,000 2023 | $ $ | 3,650,279 336,616 3,986,895 | $ $ | 10,113,521 1,319,584 11,433,105 | 7.3 11.4 |
| Estimated Useful Life | Gross Amount | Accumulated Amortization | Net Amount | Weighted Average Remaining Useful Life | ||||
| Franchise relationships Trademarks Intangible assets | 10 years 15 years | $ $ | 13,763,800 1,656,200 15,420,000 | $ $ | 2,273,903 220,600 2,494,503 | $ $ | 11,489,897 1,435,600 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the amortization expense related to intangible assets for 360 Painting was $1,492,392 for the year ended December 31, 2024, and $1,323,392 for the year ended December 31, 2023. The FDD states that there is an estimated amortization expense for the subsequent five years and thereafter, but it does not provide the specific estimated amount for each of those years.
For a prospective franchisee, this means that while the FDD provides historical amortization expenses and indicates that future estimates exist, the specific estimate for 2026 is not disclosed in this excerpt. Amortization is the process of writing off the cost of an intangible asset over its useful life, so understanding these expenses is crucial for assessing the financial health and forecasting future profitability of 360 Painting.
To get a clearer picture, a potential franchisee should ask 360 Painting for the detailed schedule of estimated amortization expenses for the next five years. This information is essential for making an informed investment decision, as it directly impacts the franchisee's potential earnings and the overall financial performance of the business.