What was the deferred compensation for City Wide in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Software subscription | - | | 1,522,554 | - | | Deferred franchise costs, net of current portion | 712,044 | | 724,741 | 791,318 | | Cash surrender value of life insurance | 1,742,041 | | 1,142,666 | 793,187 | | Total other assets | 6,587,381 | | 7,523,257 | 5,743,191 | | | | | | | | Total assets | $ 39,487,375 | $ | 33,801,707 | $ 35,090,119 |
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current Liabilities | |||
| Accounts payable | $ 16,356,455 | $ 13,026,131 | $ 9,791,091 |
| Accrued expenses | 1,533,826 | 889,963 | 776,610 |
| Current portion of operating lease liabilities | 188,516 | 182,963 | 180,007 |
| Deferred franchise revenue, current | 740,924 | 692,473 | 605,215 |
| Other deferred income | 715,920 | 358,640 | 225,115 |
| Total current liabilities | 19,535,641 | 15,150,170 | 11,578,038 |
| Long-Term Liabilities | |||
| Operating lease liabilities, less current portion | 976,357 | 1,164,873 | 1,347,836 |
| Deferred franchise revenue, net of current portion | 3,716,533 | 3,618,971 | 3,284,052 |
| Deferred compensation | 895,020 | 780,228 | 310,936 |
| Other liabilities | 276,776 | - | - |
| Refundable advance | 422,723 | 2,041,208 | - |
| Total long-term liabilities | 6,287,409 | 7,605,280 | 4,942,824 |
| Total liabilities | 25,823,050 | 22,755,450 | 16,520,862 |
| Stockholders' Equity | |||
| Common stock | |||
| Class A voting, $.01 par value; 300,000 shares | |||
| authorized, 210,000 shares issued and outstanding | 2,100 | 2,100 | 2,100 |
| Class B nonvoting, $.01 par value; 30,000,000 shares | |||
| authorized, 21,000,000 shares issued and outstanding | 210,000 | 210,000 | 210,000 |
| Additional paid-in capital | 366,366 | 366,366 | 366,366 |
| Accumulated other comprehensive income | 54,347 | 14,840 | 21,493 |
| Retained earnings | 13,031,512 | 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.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the total deferred compensation for City Wide in 2024 was $895,020. This figure appears as a line item under long-term liabilities on the balance sheet.
Deferred compensation represents amounts owed to employees or officers in the future, based on agreements like the Supplemental Executive Retirement Plan and the Long-Term Incentive Plan. These plans provide benefits upon achieving certain milestones such as years of service or EBITDA targets. The expense is accrued over the service period using the straight-line method.
Prospective franchisees should understand that deferred compensation is a liability for City Wide, representing a future obligation. While it doesn't directly impact franchisees, it's part of the overall financial picture. Significant changes in deferred compensation could signal shifts in executive compensation strategies or the company's financial outlook. Franchisees may want to inquire about the details of these plans to better understand their potential impact on the company's financial health.
It's important to note that while the total deferred compensation is listed, the FDD does not break down the amounts specifically allocated to the Supplemental Executive Retirement Plan versus the Long-Term Incentive Plan in the liabilities section. However, in Note 7, the expense for the Supplemental Executive Retirement Plan for the year ended December 31, 2024, was approximately $378,000, and the expense for the Long-Term Incentive Plan was approximately $78,000.