What were the non-NAF advertising expenses for 360 Painting for the year ended December 31, 2024?

According to 360 Painting's 2025 Franchise Disclosure Document, non-NAF advertising expenses are recorded as they are incurred and are categorized under franchise sales expenses within the consolidated statements of operations. For the year ending December 31, 2024, 360 Painting's non-NAF advertising expenses totaled $66,792.

This figure represents the expenses 360 Painting incurred on advertising activities that were not funded through the National Advertising Fund (NAF). The NAF is supported by contributions from franchisees, while non-NAF advertising expenses likely cover advertising initiatives managed and funded directly by the company.

The FDD also provides the non-NAF advertising expenses for the year ended December 31, 2023, which amounted to $559,056. This shows a significant decrease in non-NAF advertising expenses from 2023 to 2024. A prospective franchisee might want to inquire about the reasons for this decrease and understand 360 Painting's advertising strategies and how they are funded and managed.

Understanding the breakdown between NAF and non-NAF advertising is important for franchisees as it sheds light on how advertising efforts are funded and controlled. Franchisees typically contribute to the NAF, giving them a vested interest in those advertising strategies. Non-NAF advertising, on the other hand, is managed directly by 360 Painting, and understanding these expenses can provide insights into the company's overall marketing approach.