What was the weighted average remaining useful life of 360 Painting's trademarks in 2024?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | ------------------------------------------------- | |||||||
|---|---|---|---|---|---|---|---|---|
| Estimated Useful Life | Gross Amount | Accumulated Amortization | Net Amount | Weighted Average Remaining Useful Life | ||||
| Franchise relationships Trademarks Intangible assets | 10 years 15 years | $ $ | 13,763,800 1,656,200 15,420,000 2023 | $ $ | 3,650,279 336,616 3,986,895 | $ $ | 10,113,521 1,319,584 11,433,105 | 7.3 11.4 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 56)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the weighted average remaining useful life of the trademarks as of 2024 was 11.4 years. The trademarks themselves have an estimated useful life of 15 years. The gross amount of the trademarks was $1,656,200, with accumulated amortization of $336,616, resulting in a net amount of $1,319,584.
For a prospective franchisee, this indicates how long 360 Painting expects to benefit from its trademarks' value. The remaining useful life is an accounting estimate of how long the trademarks will continue to generate revenue for the company. This can be influenced by factors such as market conditions, competition, and consumer preferences.
The trademarks are a crucial asset for 360 Painting franchises, as they represent the brand's identity and reputation. A longer remaining useful life suggests that the franchisor believes the trademarks will maintain their value and relevance for a significant period. This could provide franchisees with a sense of stability and confidence in the brand's long-term prospects.
It is important to note that the weighted average remaining useful life is an estimate and may change over time. Factors such as changes in consumer preferences, increased competition, or legal challenges to the trademarks could impact their value and remaining useful life. Prospective franchisees should consider these factors when evaluating the financial statements and assessing the overall risk and potential return of investing in a 360 Painting franchise.