What were the non-NAF advertising expenses for 360 Painting for the year ended December 31, 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
F advertising expenses are recognized as incurred and are included in franchise support expenses on the consolidated statements of operations. NAF advertising expenses for the years ended December 31, 2024 and 2023 were $1,287,755 and $991,224, respectively.
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 ending December 31, 2023, were $559,056. These expenses are recognized as incurred and are included in franchise sales expenses on the consolidated statements of operations.
Non-NAF advertising expenses represent advertising costs that are not paid from the national advertising fund (NAF). These are separate from the NAF advertising expenses, which for the year ended December 31, 2023, totaled $991,224. The NAF is funded by franchisees, and these funds are used for preparing and producing various advertising and marketing materials for the franchisees.
The distinction between NAF and non-NAF advertising expenses is important for prospective franchisees. The NAF expenses reflect collective advertising efforts funded by franchisees, while non-NAF expenses likely represent 360 Painting's corporate advertising initiatives. Understanding both types of advertising expenses can give a franchisee a clearer picture of the overall investment in marketing and advertising for the 360 Painting brand.