What was the reported amount of goodwill for 360 Painting in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
rmed, otherwise no further analysis is required. The Company also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. The ultimate outcome of the goodwill impairment assessment will be the same whether the Company chooses to perform the qualitative assessment or proceed directly to the quantitative impairment test.
The Company chose to perform a qualitative impairment test for goodwill as of
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the company performed a qualitative impairment test for goodwill as of December 31, 2023, and December 31, 2022. In 2022, the company recognized an impairment charge of $169,724 related to the goodwill of Renew Crew. The goodwill impairment charge is included in depreciation and amortization expense on the consolidated statements of operations.
For a prospective 360 Painting franchisee, this indicates that the company assesses the value of its goodwill annually. Goodwill, in accounting terms, represents the intangible assets of a business, such as brand reputation and customer relationships. An impairment charge suggests that the company has reassessed the value of its goodwill and determined that it has decreased.
The fact that 360 Painting recognized an impairment charge for Renew Crew in 2022, but not in 2023, could suggest that the performance of the Renew Crew brand stabilized or improved in 2023. However, it's important to note that this information pertains to Renew Crew, another brand under Premium Service Brands, LLC, and not directly to 360 Painting. The FDD does not specify the exact amount of goodwill recorded for 360 Painting itself in 2023. A prospective franchisee should inquire about the specific goodwill assessments and any related impairment charges for the 360 Painting brand directly from the franchisor to gain a clearer understanding of the brand's financial performance and stability.