What were the non-NAF advertising expenses for 360 Painting for the year ended December 31, 2022?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
preparing and producing various advertising and marketing materials for the franchisees. The NAF advertising expenses are recognized as incurred and are included in franchise support expenses on the consolidated statements of operations. NAF advertising expen
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, non-NAF advertising expenses for the year ended December 31, 2022, were $461,056. These expenses are recognized as incurred and are included in franchise sales expenses on the consolidated statements of operations.
Non-NAF advertising expenses are distinct from NAF (National Advertising Fund) expenses, which are funded by franchisees and used for preparing and producing advertising and marketing materials. Non-NAF advertising costs are part of the franchise sales expenses.
For a prospective franchisee, this means that 360 Painting incurred $461,056 in non-NAF advertising expenses during 2022. This figure provides insight into the company's investment in advertising outside of the national advertising fund, which could include regional or local advertising initiatives, or other marketing efforts not covered by the NAF.