What was the value of notes receivable 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
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for 360 Painting does not specifically list a value for "notes receivable" as of December 31, 2023. However, it does include an "accounts receivable, net" value within the consolidated financial statements of Premium Service Brands, LLC and Subsidiaries, which guarantees 360 Painting's obligations.
As of December 31, 2023, the "accounts receivable, net" was $2,838,106. This figure represents the amount Premium Service Brands, LLC expected to collect from outstanding balances, after deducting an allowance for doubtful accounts. The allowance for doubtful accounts as of December 31, 2023 was $232,343. This means that the gross accounts receivable would have been higher, but this allowance was set aside to account for potential uncollectible amounts.
Prospective franchisees should be aware that accounts receivable can fluctuate and are subject to collection risks. Understanding the policies and procedures 360 Painting has in place for managing and collecting accounts receivable is important. Further, it would be prudent to inquire about the historical trends in accounts receivable and the effectiveness of their collection efforts to better assess the financial health of the company.
It is important to note the distinction between "accounts receivable" and "notes receivable." Accounts receivable typically arise from sales on credit, while notes receivable are formal written promises to pay a specific sum of money on a specific date, often with interest. Since the FDD only provides information on accounts receivable, a potential franchisee may want to ask 360 Painting's franchisor for more specific information about any notes receivable the company may hold.