What is the estimated useful life of the trademarks intangible assets for 360 Painting?
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 360 Painting's 2025 Franchise Disclosure Document, the trademarks intangible assets have an estimated useful life of 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 is relevant in understanding how 360 Painting values its intangible assets and how these assets are depreciated over time. While this doesn't directly impact the franchisee's day-to-day operations, it provides insight into the financial management and valuation practices of the franchisor.
It's important to note that the actual value and impact of the trademarks can extend beyond this 15-year period, as brand recognition and goodwill can continue to benefit the franchise system. However, from an accounting perspective, the estimated useful life is set at 15 years for amortization purposes.