What were the costs of services, supplies, and equipment 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 cost of service and supplies for the year 2024 was $3,445,053. This figure represents the expenses City Wide incurred for services and supplies during that year.
This information is crucial for potential franchisees as it provides insight into the operational costs of the franchisor. Understanding these costs can help franchisees better assess the financial health and stability of City Wide. It's important to note that this figure does not include costs incurred by individual franchisees, but rather reflects the franchisor's expenses.
Prospective franchisees should consider this figure in conjunction with other financial data provided in the FDD, such as revenue and other expenses, to gain a comprehensive understanding of City Wide's financial performance. Additionally, it would be prudent to inquire about the specific types of services and supplies included in this cost category to better understand what drives these expenses.