Does the financial statement preparation for 360 Painting include the accounts of wholly owned subsidiaries?

According to the 2025 FDD, the consolidated financial statements for 360 Painting include the accounts of the company and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated during the consolidation process. This means that the financial statements provide a comprehensive view of the entire 360 Painting organization, reflecting the combined financial performance and position of the parent company and its subsidiaries, without any double-counting of transactions between them.

This approach to financial reporting is standard practice, as it gives a more accurate picture of the overall financial health and performance of the entire 360 Painting enterprise. By consolidating the financials, stakeholders can see the total assets, liabilities, equity, revenues, and expenses of the group as a whole. This is particularly important for potential investors, lenders, and franchisees who need to assess the financial stability and profitability of 360 Painting.

Furthermore, the FDD states that the audited consolidated financial statements of Premium Service Brands, LLC and Subsidiaries, as of and for the years ended December 31, 2024, December 31, 2023 and December 31, 2022 are included in Exhibit B. Premium Service Brands, LLC provides an absolute and unconditional guarantee to assume the duties and obligations to 360 Painting franchisees should 360 Painting fail to fulfill them. This guarantee offers an additional layer of security for franchisees, knowing that a larger entity stands behind 360 Painting's commitments.