What is the stated purpose of 360 Painting's acquisition of Insight Business Solutions, LLC?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
The purchase price was allocated as follows:
| Current assets | $ - |
|---|---|
| Goodwill | 1,635,000 |
| Intangible assets | 5,190,000 |
| Assets acquired | 6,825,000 |
| Liabilities assumed | (75,000) |
| Purchase price | $ 6,750,000 |
Insight Business Solutions
In January 2023, the Company entered into a membership interest purchase agreement to acquire Insight Business Solutions, LLC for an aggregate purchase price of $1. Insight operates a contact center and has been acquired
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 360 Painting acquired Insight Business Solutions, LLC in January 2023. The stated purpose of this acquisition was to enable 360 Painting franchisees to process communications with customers through Insight's contact center, which would be integrated into 360 Painting's home services franchising platform. The purchase price for Insight Business Solutions, LLC was $1.
This acquisition suggests that 360 Painting is aiming to streamline customer interactions for its franchisees. By integrating a contact center into its platform, 360 Painting may be seeking to improve customer service, lead management, and overall operational efficiency for its franchisees. This could potentially free up franchisees to focus more on the actual painting services and business development aspects of their operations.
However, the FDD also notes that 360 Painting incurred transaction costs of $33,017 related to the acquisition, which were expensed. While the purchase price was only $1, the additional transaction costs indicate that there were other expenses associated with the acquisition, such as legal or consulting fees. Prospective franchisees may want to inquire about how this acquisition has impacted the franchise system and whether there are any ongoing costs or benefits associated with the integrated contact center services.