What is the estimated useful life of 360 Painting's trademarks?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting estimates the useful life of its trademarks to be 15 years. This means that 360 Painting amortizes the value of its trademarks over a 15-year period for accounting purposes.
For a prospective franchisee, this information provides insight into how 360 Painting values its intangible assets. Trademarks are a crucial part of a franchise system, representing brand recognition and goodwill. The valuation and amortization of these trademarks can affect the company's financial statements and, indirectly, investor confidence.
The FDD also provides the gross amount and net amount for trademarks, which were valued at $1,656,200 in gross amount. After accumulated amortization of $336,616, the net amount was $1,319,584. This indicates the remaining value of the trademarks on 360 Painting's balance sheet as of 2024. Understanding these figures can help a franchisee assess the financial health and stability of the 360 Painting franchise system.