What was the change in inventory for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Changes in | |||||
|---|---|---|---|---|---|
| Accounts receivable | (838,659) | (645,018) | (691,842) | ||
| Deferred franchise costs and prepaid expenses | (319,698) | 46,486 | (241,676) | ||
| Inventory | 58,725 | (75) | (8,355) | ||
| Software subscription | (631,500) | (891,054) | - | ||
| Accounts payable | 3,969,091 | 2,603,540 | 3,211,061 | ||
| Accrued expenses | 920,639 | 113,353 | 363,757 | ||
| Operating lease liabilities | (182,963) | (180,007) | (177,099) | ||
| Deferred franchise revenue and other deferred income | 503,293 | 555,702 | 1,223,390 | ||
| Deferred compensation | (340,500) | (144,863) | 119,200 | ||
| Refundable advance | (1,618,485) | 2,041,208 | - |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the change in inventory for the company in 2022 was a decrease of $8,355. This figure is part of the consolidated financial statements that have been audited. The FDD includes the consolidated balance sheets as of December 31, 2024, 2023, and 2022, as well as the related consolidated statements of income and comprehensive income.
This decrease in inventory could be due to a number of factors, such as more efficient inventory management, changes in demand for City Wide's services, or changes in the company's supply chain. For a prospective franchisee, this information provides insight into how City Wide manages its assets and working capital. It is important to note that inventory for a service-based franchise like City Wide may include supplies, materials, or other items necessary to provide the contracted services.
Understanding the nuances of inventory changes can help a franchisee better manage their own resources and potentially improve profitability. It is advisable for potential franchisees to discuss these figures with City Wide representatives to gain a deeper understanding of the factors influencing inventory levels and how they might impact their franchise operations.