What were the advertising and marketing expenses for City Wide in 2024 after eliminating entries?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 10,452,951 | 17,969,298 | | Total stockholders' equity | 13,664,325 | 11,046,257 | 18,569,257 | | Total liabilities and stockholders' equity | $ 39,487,375 | $ 33,801,707 | $ 35,090,119 |
City Wide Franchise Company, Inc. & Subsidiaries Consolidated Statements of Income and Comprehensive Income Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Royalties | $ 29,465,788 | $ 24,303,311 | $ 20,595,555 |
| Franchise fees | 545,350 | 825,418 | 620,722 |
| Other franchise goods and services | 14,130,864 | 11,947,867 | 8,773,822 |
| Total revenues | 44,142,002 | 37,076,596 | 29,990,099 |
| Expenses | |||
| Advertising and marketing | 1,111,167 | 986,941 | 754,532 |
| Cost of service and supplies | 3,445,053 | 3,578,645 | 2,378,710 |
| Depreciation | 999,912 | 1,063,068 | 1,095,919 |
| Dues and subscriptions | 308,813 | 281,306 | 261,741 |
| Facilities | 330,973 | 313,881 | 302,197 |
| Franchise meetings and awards | 1,035,761 | 677,098 | 607,632 |
| Miscellaneous | 1,049,080 | 502,862 | 326,209 |
| Office supplies | 40,824 | 46,077 | 50,386 |
| Professional fees and services | 1,665,759 | 1,674,776 | 1,695,367 |
| Salaries and benefits | 13,682,507 | 11,875,148 | 10,021,695 |
| Taxes and licenses | 123,714 | 110,935 | 89,265 |
| Training | 16,411 | 13,436 | 20,588 |
| Travel and meals | 425,749 | 422,308 | 436,364 |
| Loss on abandonment of software subscription | 1,454,554 | - | - |
| Total expenses | 25,690,277 | 21,546,481 | 18,040,605 |
| Operating Income | 18,451,725 | 15,530,115 | 11,949,494 |
| Other Income (Expense) | |||
| Management fee | (900,000) | (2,507,195) | (1,380,004) |
| Interest income | 751,239 | 767,173 | 195,476 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the advertising and marketing expenses for the year 2024 were $1,111,167. This figure represents the total expenses incurred by City Wide for advertising and marketing activities during that year.
It is important to note that this amount is before any potential eliminating entries. Eliminating entries typically refer to adjustments made during the consolidation of financial statements to remove the effects of transactions between related entities within the City Wide organization. These entries ensure that the consolidated financial statements accurately reflect the financial position and results of operations of the overall City Wide franchise system.
Therefore, the $1,111,167 represents the gross amount spent on advertising and marketing before any internal accounting adjustments. A prospective franchisee should consider this figure as an indicator of City Wide's investment in promoting the brand and supporting its franchisees through marketing efforts. However, it is crucial to understand that the final impact on the financial statements may differ after the elimination of intercompany transactions.