What was the total debt for 360 Painting as of December 31, 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 the 2025 FDD, 360 Painting's parent company, Premium Service Brands, LLC, had total liabilities of $40,685,068 as of December 31, 2023. This figure includes several components, such as current liabilities, long-term debt, lease liabilities, and deferred revenue.
Specifically, the long-term debt, net of current maturities, was $19,918,725. The current maturities of long-term debt were $599,500. The current liabilities totaled $6,388,148, lease liability was $1,568,558, and noncurrent deferred revenue amounted to $12,809,637. These figures provide a snapshot of the financial obligations that Premium Service Brands, LLC, which guarantees 360 Painting's obligations, had at the end of 2023.
A prospective 360 Painting franchisee should consider these liabilities as part of their due diligence. While the franchisor's parent company's debt doesn't directly impact day-to-day operations, it can reflect on the financial stability and long-term viability of the franchisor. High debt levels can sometimes indicate higher risk, potentially affecting the support and resources available to franchisees. It is important to note that these are consolidated figures for Premium Service Brands, LLC and its subsidiaries, not just 360 Painting alone.
Franchisees should consult with a financial advisor to understand the implications of these financial statements fully. Understanding the financial health of the franchisor is crucial for making an informed decision about investing in a 360 Painting franchise.