Does the 360 Painting FDD include the separate financial statements of 360 Painting, LLC?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit B to this disclosure document contains the audited consolidated financial statements of our affiliate, Premium Service Brands, LLC and Subsidiaries, as of and for the years ended December 31, 2024, December 31, 2023 and December 31, 2022.
Our separate financial statements are not included in this disclosure document. Should we fail to fulfill our duties and obligations to our franchisees under their franchise agreements, Premium Service Brands, LLC absolutely and unconditionally guaranteesto assume those duties and obligations. Copies of the Guarantees of Performance by Premium Service Brands, LLC are included in Exhibit B.
The fiscal year for both us and Premium Service Brands, LLC is December 31st of each calendar year.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, the document does not include the separate financial statements for 360 Painting, LLC. Instead, Exhibit B contains the audited consolidated financial statements of 360 Painting's affiliate, Premium Service Brands, LLC and Subsidiaries, for the years ended December 31, 2024, December 31, 2023, and December 31, 2022.
This means that prospective franchisees will not be able to review the individual financial performance of 360 Painting, LLC itself. Instead, they will see the combined financial results of its parent company and all its subsidiaries. This is a common practice in franchising when the franchisor is a subsidiary or part of a larger organization.
However, to protect franchisees, Premium Service Brands, LLC provides an absolute and unconditional guarantee to assume the duties and obligations of 360 Painting, LLC to its franchisees should 360 Painting, LLC fail to meet them. Copies of these Guarantees of Performance by Premium Service Brands, LLC are included in Exhibit B. This guarantee offers some financial security to franchisees, as the parent company is legally bound to support the franchise system if 360 Painting, LLC encounters financial difficulties.
The FDD also states that the fiscal year for both 360 Painting, LLC and Premium Service Brands, LLC ends on December 31st of each calendar year. This information is useful for understanding the time frame covered by the provided financial statements.