What were 360 Painting's total costs and expenses in 2024?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
n | 1,416,676 | 1,568,558 | | Deferred revenue, noncurrent | 13,875,809 | 12,809,637 | | Total liabilities | 42,330,330 | 40,685,068 | | Members' deficit | (5,873,114) | (5,185,319) | | Total liabilities and members' deficit | $ 36,457,216 $ | 35,499,749 | | | 2024 | 2023 | |-------------------------------------|------------------------|------------| | | | | | Revenues | | | | Franchise service fees | $ 17,697,574 $ | 17,385,428 | | Franchise sales fees | 6,173,857 | 4,940,724 | | Other revenues | 1,570,613 | 1,266,744 | | | | | | Total revenues | 25,442,044 | 23,592,896 | | | | | | Costs and expenses | | | | Franchise support expenses | 10,331,257 | 9,990,315 | | Franchise sales expenses | 6,025,688 | 5,579,325 | | General and administrative expenses | 4,974,157 | 4,311,590 | | Transaction costs | - | 103,047 | | Depreciation and amortization | 1,983,683 | 1,
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the total costs and expenses for 2024 were $23,314,785. These costs and expenses include several categories. Franchise support expenses totaled $10,331,257, franchise sales expenses were $6,025,688, and general and administrative expenses amounted to $4,974,157. Additionally, depreciation and amortization expenses accounted for $1,983,683.
Understanding the breakdown of these expenses is crucial for potential franchisees. Franchise support expenses likely cover the costs associated with assisting and training franchisees, while franchise sales expenses relate to attracting and onboarding new franchisees. General and administrative expenses cover the overhead costs of running the 360 Painting organization. Depreciation and amortization reflect the reduction in value of assets over time.
For a prospective franchisee, this information provides insight into where 360 Painting is allocating its resources. A significant portion of expenses is dedicated to franchise support, which could indicate a strong commitment to franchisee success. However, it's important to compare these figures with previous years and industry benchmarks to assess whether these expenses are reasonable and well-managed. Reviewing these figures in comparison to the total revenues can also provide a clearer picture of the company's profitability and efficiency.
It is also worth noting that while 360 Painting had total revenues of $25,442,044, the net loss for 2024 was $(687,795). This indicates that while the company generated substantial revenue, its expenses exceeded its income, resulting in a net loss for the year. This is an important factor for potential franchisees to consider, as it may impact the financial stability and future growth of the company.