What was the accumulated depreciation for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Property and equipment consists of the following at December 31, 2024, 2023, and 2022: | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Leasehold improvements | $ 1,253,640 | $ 1,253,640 | $ 1,253,640 | |
| Automobiles | 43,294 | 43,294 | 43,294 | |
| Office furniture and equipment | 346,966 | 336,949 | 336,949 | |
| Computer equipment | 148,679 | 148,679 | 148,679 | |
| Computer software | 5,526,191 | 5,163,959 | 5,163,959 | |
| Telephone equipment | 6,976 | 6,976 | 6,976 | |
| 7,325,746 | 6,953,497 | 6,953,497 | ||
| Less: accumulated depreciation | (5,934,893) | (4,934,981) | (3,871,913) | |
| Property and equipment, net | $ 1,390,853 | $ 2,018,516 | $ 3,081,584 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the accumulated depreciation as of December 31, 2022, was $(3,871,913). This figure represents the total depreciation of City Wide's assets, such as leasehold improvements, automobiles, office furniture and equipment, computer equipment, computer software, and telephone equipment, up to that date. Depreciation is an accounting method of allocating the cost of an asset over its useful life.
For a prospective City Wide franchisee, understanding accumulated depreciation is crucial for assessing the financial health and asset management practices of the franchisor. A significant accumulated depreciation might indicate older assets that could require replacement or upgrades in the near future. However, it is also a normal part of accounting for capital assets.
It is important to note that this figure reflects the accumulated depreciation for City Wide Franchise Company, Inc. & Subsidiaries as a whole, not for individual franchise locations. Franchisees will have their own depreciation schedules for assets they own within their specific businesses. Reviewing these figures can provide insight into how City Wide manages its assets and reinvests in its business, but it's essential to consider this in the context of the company's overall financial statements.