What is the estimated useful life of 360 Painting's franchise relationships as of 2024?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
lated to property and equipment recognized in the consolidated statement of operations was $334,358 and $348,175 for the years ended December 2024 and 2023, respectively.
6. Intangible Assets and Goodwill
Intangible Assets
Intangible assets consisted of the following as of December 31, 2024 and 2023:
| 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 Lif |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting franchise relationships have an estimated useful life of 10 years as of December 31, 2024. The gross amount of franchise relationships was valued at $13,763,800, with accumulated amortization of $3,650,279, resulting in a net amount of $10,113,521. The weighted average remaining useful life was 7.3 years.
In 2023, the estimated useful life for franchise relationships was also 10 years. The gross amount was $13,763,800, with an accumulated amortization of $2,273,903, resulting in a net amount of $11,489,897. The weighted average remaining useful life was 8.3 years.
This information is relevant for prospective franchisees as it provides insight into how 360 Painting values its franchise relationships and how these assets are amortized over time. Understanding the useful life and amortization schedule can help franchisees assess the long-term financial health and stability of the franchise system.