What was the deferred compensation for City Wide in 2023?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Long-Term Liabilities | ||||||
| Deferred compensation | 895,020 | 780,228 | 310,936 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the company's deferred compensation totaled $780,228 in 2023. This figure is part of the long-term liabilities reported on City Wide's consolidated balance sheets. Deferred compensation represents amounts owed to employees or executives that will be paid out at a later date, often as part of a retirement or incentive plan.
For a prospective City Wide franchisee, understanding deferred compensation is crucial for assessing the company's overall financial health and stability. It provides insight into City Wide's long-term obligations and how they manage their financial commitments. Reviewing these liabilities helps potential franchisees evaluate the company's financial practices and potential risks.
It's important to note that deferred compensation is a long-term liability, meaning these obligations are not expected to be settled within the next year. This distinction is important because it affects how City Wide manages its cash flow and financial planning. Franchisees should consider this information when evaluating the financial stability of City Wide and its ability to support its franchisees over the long term.