What was the total balance of goodwill for 360 Painting as of December 31, 2023 and 2024?
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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, the balance of goodwill for 360 Painting was $7,068,689 as of December 31, 2023, and it remained the same at $7,068,689 as of December 31, 2024. Goodwill, in accounting terms, represents the intangible asset arising when a company acquires another company for a price higher than the net asset value of the acquired company. It includes factors like brand reputation, customer relationships, and intellectual property.
For a prospective 360 Painting franchisee, this indicates that the brand has a significant value beyond its tangible assets. The consistent goodwill balance from 2023 to 2024 suggests that the brand's overall value remained stable during that period. This can be a positive sign, reflecting consistent brand strength and market position.
However, it's important to note that goodwill is subject to impairment. Companies are required to assess the value of goodwill annually, and if its fair value falls below its carrying amount, an impairment charge must be recorded, reducing the asset's value. While the FDD shows a stable goodwill balance for the period, future performance and market conditions could impact this value. A prospective franchisee should consider this when evaluating the long-term financial health and stability of the 360 Painting franchise.