What was the net income for 360 Painting in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
eferred revenue, noncurrent | 12,809,637 | 10,901,598 | | Total liabilities | 40,685,068 | 31,458,933 | | Members' deficit | (5,185,319) | (3,701,440) | | Total liabilities and members' deficit | 35,499,749 | $ 27,757,493 | | $ | | |
Premium Service Brands, LLC Consolidated Statements of Operations For the Years Ended December 31, 2023 and 2022
| 2023 | 2022 | |
|---|---|---|
| Revenues | ||
| Franchise service fees | $ 17,385,428 $ | 15,264,829 |
| Franchise sales fees | 4,940,724 | 5,651,579 |
| Other revenues | 1,266,744 | 1,028,652 |
| Total revenues | 23,592,896 | 21,945,060 |
| Costs and expenses | ||
| Franchise support expenses | 9,990,315 | 8,680,470 |
| Franchise sales expenses | 5,579,325 | 5,573,085 |
| General and administrative expenses | 4,444,841 | 3,697,732 |
| Tran |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the net income for 2023 was a loss of $733,879. This is in contrast to the net income of $948,081 in 2022. This information is based on the consolidated financial statements of Premium Service Brands, LLC and Subsidiaries. These statements include 360 Painting's financial data.
For a prospective franchisee, this data point highlights the importance of carefully reviewing the financial statements and understanding the factors that contributed to the net loss in 2023. While past performance is not indicative of future results, it is essential to investigate the reasons behind the change in net income. Understanding the revenue streams and cost structures is crucial for assessing the financial health and stability of the franchisor.
It is also important to note that the financial statements provided are for Premium Service Brands, LLC and Subsidiaries, not just 360 Painting alone. While Premium Service Brands, LLC guarantees the obligations of 360 Painting, the overall financial performance of the parent company and its other subsidiaries could impact the resources available to support the 360 Painting franchise system. A potential franchisee should consider this interconnectedness when evaluating the financial viability of investing in a 360 Painting franchise.
Prospective franchisees should seek clarification from 360 Painting regarding the reasons for the net loss in 2023 and what measures the company is taking to improve its financial performance. Additionally, they should consult with a financial advisor to assess the risks and potential rewards of investing in a 360 Painting franchise based on their individual circumstances and financial goals.