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

According to the 2025 FDD, the consolidated financial statements for Premium Service Brands, LLC, the affiliate of 360 Painting, include the accounts of the company and its wholly-owned subsidiaries. All intercompany accounts and transactions are eliminated during the consolidation process. This means that the financial performance of Premium Service Brands and its subsidiaries are combined into a single set of financial statements, providing a comprehensive view of the overall financial health of the organization.

For a prospective 360 Painting franchisee, this is important because it provides insight into the financial stability of the parent company and its related entities. Consolidated financial statements offer a more complete picture of the financial resources available to support the 360 Painting franchise system. This can be reassuring for franchisees, as it suggests that the franchisor has a solid financial foundation.

However, franchisees should also be aware that the financial statements presented are those of Premium Service Brands, LLC, not 360 Painting, LLC itself. While Premium Service Brands, LLC guarantees the obligations of 360 Painting, LLC, understanding the distinction between the two entities is crucial. Reviewing the notes to the consolidated financial statements can provide additional context and details about the relationship between Premium Service Brands and its subsidiaries, including 360 Painting.

In summary, the consolidation of financial statements offers transparency into the financial structure of 360 Painting's parent company and its subsidiaries. Prospective franchisees should carefully review these statements and related notes to assess the financial strength and stability of the overall organization.