Where is the goodwill impairment charge included on 360 Painting's consolidated statements of operations?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
rmed, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment assessment will be the same whether the Company chooses to perform the qualitative assessment or proceed directly to the quantitative impairment test.
The Company chose to perform a qualitative impairment test for goodwill as of
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, when a goodwill impairment charge is recognized, it is included in depreciation and amortization expense on the consolidated statements of operations. This means that if the company determines the value of its goodwill has decreased, the resulting charge will be reflected in this specific expense category on its financial statements.
For a prospective 360 Painting franchisee, understanding where these charges are reported can be useful for assessing the overall financial health and performance trends of the company. Goodwill impairment charges can sometimes indicate underlying issues with acquisitions or the performance of specific brands within the franchise system.
In 2022, 360 Painting recognized a goodwill impairment charge of $169,724 related to the Renew Crew brand due to the continued deterioration in the economic performance of its franchised outlets. However, the company chose to perform a qualitative impairment test for goodwill as of December 31, 2023 and 2022.