What was the total amount of 360 Painting's long-term debt, net, in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ssets consisted of the following as of December 31, 2023 and 2022:
| 2023 | 2022 | |
|---|---|---|
| Prepaid commissions | $ 7,062,651 | $ 5,458,508 |
| Notes receivable | 34,628 | 74,460 |
| Total other long-term assets | $ 7,097,279 | $ 5,532,968 |
8. Long-term Debt
Long-term debt consisted of the following as of December 31, 2023
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the company's long-term debt, net, was $19,918,725 as of December 31, 2023. This figure represents the balance of the company's term loans and delayed draw term loans, less the current portion and unamortized deferred loan costs.
For a prospective franchisee, this indicates the level of financial leverage 360 Painting carries. It is important to note that the long-term debt decreased from $20,436,661 in 2024 to $19,918,725 in 2023. Reviewing the debt structure can provide insights into the company's financial stability and its ability to meet its long-term obligations.
Understanding the components of long-term debt, such as term loans and delayed draw term loans, helps in assessing the nature of the company's financing. The deduction of the current portion and unamortized deferred loan costs provides a net figure, reflecting the actual long-term liability. This information is crucial for potential franchisees to evaluate the financial health and risk associated with investing in a 360 Painting franchise.