What was the total value of 360 Painting's liabilities in 2023?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | |
|---|---|---|
| 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 portion | 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 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the total liabilities for 2023 were $40,685,068. This figure represents the sum of all current liabilities, long-term debt, lease liabilities, and deferred revenue that 360 Painting owed to various creditors and entities at the end of the 2023 fiscal year..
Specifically, the current liabilities totaled $6,388,148, which includes accounts payable, accrued liabilities, deferred revenue, lease liabilities, and current maturities of long-term debt. The long-term debt, net of current maturities, amounted to $19,918,725. The lease liability, noncurrent portion, was $1,568,558, and the deferred revenue, noncurrent, was $12,809,637.
For a prospective 360 Painting franchisee, understanding the company's liabilities is crucial as it provides insight into the financial stability and leverage of the franchisor. A high level of liabilities compared to assets could indicate a higher risk, as it reflects the company's obligations to creditors. However, it is also important to consider the nature of these liabilities; for instance, deferred revenue might represent future service obligations rather than immediate debt. Franchisees should analyze these figures in conjunction with the asset values and revenue streams to assess the overall financial health of 360 Painting.