How much did 360 Painting have in prepaid commissions as of December 31, 2022?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ts of Andy on Call, LLC for an aggregate net purchase price of $150,000. The transaction was funded by cash on hand. Andy on Call is a home improvement and handyman franchising company and has been acquired to allow for the expansion of House Doctors.
4. Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following as of December 31, 2023 a
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the company had prepaid commissions totaling $751,616 as of December 31, 2022. This figure represents commissions that 360 Painting has paid in advance but have not yet been earned or recognized as expenses on the company's income statement.
For a prospective franchisee, understanding the level of prepaid commissions can offer insights into 360 Painting's financial management and cash flow. Prepaid commissions typically arise from various promotional activities or agreements where the company pays commissions upfront to incentivize sales or secure future business.
It's important to note that prepaid commissions are considered an asset on the balance sheet until the related services are performed or the revenue is earned, at which point they are recognized as an expense. Franchisees may want to inquire about the nature of these prepaid commissions to assess their potential impact on the company's future financial performance. Comparing these figures year-over-year, as the FDD provides, can also reveal trends in 360 Painting's commission strategies and overall financial health.