What were 360 Painting's total assets in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Charlottesville, Virginia
April 22, 2025
| 2024 | 2023 | |
|---|---|---|
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 943,020 $ | 722,074 |
| Accounts receivable, net | 3,218,426 | 2,838,106 |
| Prepaid expenses and other current assets | 3,666,212 | 2,486,419 |
| Total current assets | 7,827,658 | 6,046,599 |
| Property and equipment, net | 762,462 | 728,024 |
| Right-of-use lease asset, net | 1,476,728 | 1,633,661 |
| Intangible assets, net | 11,433,105 | 12,925,497 |
| Goodwill | 7,068,689 | 7,068,689 |
| Other assets | 7,888,574 | 7,097,279 |
| Total assets | $ 36,457,216 $ | 35,499,749 |
| Liabilities and Members' Deficit | ||
| Current liabilities | ||
| Accounts payable | $ 434,745 $ | 435,883 |
| Accrued and other liabilities | 3,365,005 | 3,368,024 |
| Deferred revenue, current | 2,041,424 | 1,860,040 |
| Lease liability, current portion | 150,635 | 124,701 |
| Current maturities of long-term debt | 609,375 | 599,500 |
| Total current liabilities | 6,601,184 | 6,388,148 |
| Long-term debt, net | 20,436,661 | 19,918,725 |
| Lease liability, noncurrent porti |
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 total assets in 2023 were $35,499,749. This figure represents the sum of all the company's possessions and rights that have monetary value. These assets are categorized into several types, including current assets, property and equipment, right-of-use lease assets, intangible assets, goodwill, and other assets.
A significant portion of 360 Painting's assets in 2023 was in the form of intangible assets, which amounted to $12,925,497. Goodwill, representing the value of the company's brand and reputation, was valued at $7,068,689. Other notable asset categories include current assets totaling $6,046,599, property and equipment valued at $728,024, right-of-use lease assets at $1,633,661 and other assets at $7,097,279.
When evaluating a franchise, a prospective franchisee should consider the composition and trends in the company's assets. A healthy asset base can indicate financial stability and the ability to support franchisees. Comparing asset values across different years, as presented in the FDD, can reveal growth patterns and potential areas of concern. For instance, a significant increase in intangible assets might warrant further investigation into how those assets are valued and their potential impact on the franchise's future performance.
It is also important to note that while total assets provide a snapshot of the company's financial position, they should be analyzed in conjunction with liabilities and equity to gain a comprehensive understanding of the company's financial health. In 2023, 360 Painting's total liabilities amounted to $40,685,068, resulting in a members' deficit of $(5,185,319). This indicates that the company's liabilities exceeded its assets, resulting in a negative equity position.