What was the reported value of prepaid commissions for 360 Painting in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ts of Andy on Call, LLC for an aggregate net purchase price of $150,000. The transaction was funded by cash on hand. Andy on Call is a home improvement and handyman franchising company and has been acquired to allow for the expansion of House Doctors.
4. Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following as of December 31, 2023 and 2022:
| 2023 | 2022 | |||
|---|---|---|---|---|
| Notes receivable | $ | 14,547 | $ | 24,990 |
| Prepaid expenses | 1,324,609 | 1,514,830 | ||
| Prepaid commissions | 985,918 | 751,616 | ||
| Other current assets | 161,344 | 160,533 | ||
| Total prepaid expenses and other |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the value of prepaid commissions in 2023 was reported under two categories. The first category shows prepaid commissions of $985,918 as part of the total prepaid expenses and other current assets. The second category shows prepaid commissions of $7,062,651.
It is important to note that these figures are part of the consolidated financial statements of Premium Service Brands, LLC and Subsidiaries, which includes 360 Painting. The FDD states that the separate financial statements for 360 Painting itself are not included in the document.
A prospective franchisee should inquire with 360 Painting about the nature of these prepaid commissions, what they represent, and why they are reported in two separate categories within the financial statements to fully understand the financial obligations.