Are intercompany accounts and transactions eliminated during the consolidation of 360 Painting's financial statements?

According to the 2025 FDD, 360 Painting's consolidated financial statements include the accounts of the company and its wholly-owned subsidiaries. As part of the consolidation process, all intercompany accounts and transactions are eliminated.

This means that any financial transactions or balances between 360 Painting and its subsidiaries are removed from the combined financial statements. This is a standard accounting practice to prevent the artificial inflation of a company's financial performance. By eliminating these internal transactions, the consolidated financial statements provide a clearer picture of the overall financial position and performance of 360 Painting and its subsidiaries as a single economic entity.

For a prospective 360 Painting franchisee, this indicates that the financial statements presented in the FDD are prepared using standard accounting practices that aim to provide an accurate representation of the financial health of the overall organization. Franchisees can be reasonably confident that the financial data presented reflects the true performance of the consolidated entity, without distortion from internal transactions.