What was the reported value of 360 Painting's software for internal use in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
3,690 | 1,324,609 | | Prepaid commissions | 1,118,849 | 985,918 | | Other current assets | 75,000 | 161,345 | | Total prepaid expenses and other current assets | $ 3,666,212 | $ 2,486,419 |
5. Property and Equipment
Property and equipment consisted of the following as of December 31, 2024 and 2023:
| Useful Life | 2024 | 2023 | |
|---|---|---|---|
| Office equipment | 3 – 5 years | $ 387,762 | $ 224,403 |
| Software for internal use | 1 – 2 years | 873,991 | 687 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the reported value of its software for internal use in 2023 was $687,106. The FDD also provides the useful life of the software, which is estimated to be between one and two years.
In 2024, the reported value of software for internal use was $873,991. This indicates an increase in the value of software year-over-year.
Prospective franchisees should consider the value and useful life of the software as part of their overall assessment of 360 Painting's financial position. Understanding the role and importance of this software in the business operations is crucial. Additionally, it would be prudent to inquire about any planned upgrades or changes to the software, as these could impact its value and the franchisee's operational costs.