What does City Wide consider to be cash equivalents?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the company considers liquid investments with original maturities of three months or less to be cash equivalents. These cash and cash equivalents primarily consist of deposit accounts held with financial institutions.
For a prospective franchisee, this definition is important for understanding City Wide's financial statements. Cash equivalents are highly liquid assets that can be quickly converted to cash. This detail provides insight into the company's short-term financial health and liquidity.
The FDD also notes that at the end of 2024, City Wide's cash accounts exceeded federally insured limits by approximately $2,991,000. This could be a risk factor, as amounts exceeding insurance limits could be subject to loss in the event of a bank failure. Franchisees may want to inquire about City Wide's policies for managing cash balances above insured limits.