What was the total value of 360 Painting's software for internal use as of December 31, 2024?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
3,690 | 1,324,609 | | Prepaid commissions | 1,118,849 | 985,918 | | Other current assets | 75,000 | 161,345 | | Total prepaid expenses and other current assets | $ 3,666,212 | $ 2,486,419 |
5. Property and Equipment
Property and equipment consisted of the following as of December 31, 2024 and 2023:
| Useful Life | 2024 | 2023 | |
|---|---|---|---|
| Office equipment | 3 – 5 years | $ 387,762 | $ 224,403 |
| Software for internal use | 1 – 2 years | 873,991 | 687 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the total value of software for internal use was $873,991 as of December 31, 2024. The FDD also provides the software's useful life, which is estimated to be between one and two years.
For a prospective franchisee, this figure indicates the investment 360 Painting has made in its internal software systems. These systems likely support various aspects of the franchise operations, such as customer relationship management, project management, or financial tracking. The relatively short useful life suggests that the software may require frequent updates or replacements, which could lead to ongoing technology expenses for 360 Painting.
It's important to note that this value represents the book value of the software, which may differ from its actual market value or replacement cost. Additionally, the FDD lists capitalized software development costs as a separate item, indicating further investment in software-related assets. A potential franchisee may want to inquire about the specific functions of the internal software and any associated costs or obligations for franchisees.