What was 360 Painting's net loss in 2024?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Charlottesville, Virginia
April 22, 2025
| 2024 | 2023 | ||
|---|---|---|---|
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | $ 943,020 $ | 722,074 | |
| Accounts receivable, net | 3,218,426 | 2,838,106 | |
| Prepaid expenses and other current assets | 3,666,212 | 2,486,419 | |
| Total current assets | 7,827,658 | 6,046,599 | |
| Property and equipment, net | 762,462 | 728,024 | |
| Right-of-use lease asset, net | 1,476,728 | 1,633,661 | |
| Intangible assets, net | 11,433,105 | 12,925,497 | |
| Goodwill | 7,068,689 | 7,068,689 | |
| Other assets | 7,888,574 | 7,097,279 | |
| Total assets | $ 36,457,216 $ | 35,499,749 | |
| Liabilities and Members' Deficit | |||
| Current liabilities | |||
| Accounts payable | $ 434,745 $ | 435,883 | |
| Accrued and other liabilities | 3,365,005 | 3,368,024 | |
| Deferred revenue, current | 2,041,424 | 1,860,040 | |
| Lease liability, current portion | 150,635 | 124,701 | |
| Current maturities of long-term debt | 609,375 | 599,500 | |
| Total current liabilities | 6,601,184 | 6,388,148 | |
| Long-term debt, net | 20,436,661 | 19,918,725 | |
| Lease liability, noncurrent portion | 1,416,676 | 1,568,558 | |
| Deferred revenue, noncurrent | 13,875,809 | 12,809,637 | |
| Total liabilities | 42,330,330 | 40,685,068 | |
| Members' deficit | (5,873,114) | (5,185,319) | |
| Total liabilities and members' deficit | $ 36,457,216 $ | 35,499,749 | |
| 2024 | 2023 | ||
| ------------------------------------- | ------------------------ | ------------ | |
| Revenues | |||
| Franchise service fees | $ 17,697,574 $ | 17,385,428 | |
| Franchise sales fees | 6,173,857 | 4,940,724 | |
| Other revenues | 1,570,613 | 1,266,744 | |
| Total revenues | 25,442,044 | 23,592,896 | |
| Costs and expenses | |||
| Franchise support expenses | 10,331,257 | 9,990,315 | |
| Franchise sales expenses | 6,025,688 | 5,579,325 | |
| General and administrative expenses | 4,974,157 | 4,311,590 | |
| Transaction costs | - | 103,047 | |
| Depreciation and amortization | 1,983,683 | 1,804,818 | |
| Total costs and expenses | 23,314,785 | 21,789,095 | |
| Operating income | 2,127,259 | 1,803,801 | |
| Interest income | (620) | (2,443) | |
| Interest expense | 2,815,674 | 2,540,123 | |
| Net loss | $ (687,795) $ | (733,879) | |
| Members' Capital | Accumulated Deficit | Members' Deficit | |
| -------------------------------------- | ------------------------- | ------------------------ | ------------------------ |
| Balances at December 31, 2022 | $ (3,015,800) $ | (685,640) $ | (3,701,440) |
| Net loss | - | (733,879) | (733,879) |
| Distributions to Members | (750,000) | - | (750,000) |
| Balances at December 31, 2023 | $ (3,765,800) $ | (1,419,519) $ | (5,185,319) |
| Net loss | - | (687,795) | (687,795) |
| Balances at December 31, 2024 | $ (3,765,800) $ | (2,107,314) $ | (5,873,114) |
| 2024 | 2023 | ||
| ---------------------------------------------------------------- | ----------------------- | ------------- | |
| Cash flows from operating activities | |||
| Net loss | $ (687,795) $ | (733,879) | |
| Adjustments to reconcile net income to net cash | |||
| provided by (used in) operating activities | |||
| Depreciation and amortization | 1,983,683 | 1,804,818 | |
| Amortization of deferred loan costs | 91,061 | 79,207 | |
| Changes in assets and liabilities | |||
| Accounts receiva |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the company experienced a net loss in 2024. Specifically, the net loss for the year ended December 31, 2024, was $(687,795). This figure is derived from the consolidated financial statements of Premium Service Brands, LLC and Subsidiaries, which includes 360 Painting.
For a prospective franchisee, this indicates that 360 Painting, as part of its parent company's financial performance, did not generate a profit in 2024. Instead, its expenses and costs exceeded its revenues, resulting in a loss. While a single year's loss doesn't necessarily indicate long-term financial instability, it is a point to consider when evaluating the overall health and potential risks associated with investing in a 360 Painting franchise.
It's important to note that the financial statements provided are for Premium Service Brands, LLC and Subsidiaries, not solely for 360 Painting. However, the document states that Premium Service Brands, LLC guarantees the obligations of 360 Painting, LLC. Therefore, the financial performance of the parent company is relevant to the stability and support that 360 Painting franchisees can expect. A potential franchisee should review the complete financial statements and consider seeking professional financial advice to fully understand the implications of this net loss and the overall financial condition of the franchisor.