What was the depreciation expense for City Wide in 2023?

According to City Wide's 2025 Franchise Disclosure Document, the depreciation expense for the year 2023 was $1,063,068. This figure is part of the consolidated statements of cash flows, which detail the movement of cash both into and out of the company. Depreciation is a non-cash expense, meaning it reduces net income without actually involving a cash outflow. It reflects the reduction in value of City Wide's assets over time.

For a prospective City Wide franchisee, understanding depreciation is important for assessing the company's financial health and profitability. While franchisees do not directly share in these specific corporate-level expenses, the overall financial stability of the franchisor can impact the support and services they receive. A healthy franchisor is more likely to invest in technology, training, and marketing, all of which benefit the franchisees.

Depreciation is a common accounting practice across all industries, including franchising. Franchisors typically report depreciation as part of their financial statements to provide a clear picture of their financial performance. Reviewing these figures over several years, as presented in the FDD, can reveal trends and insights into how City Wide manages its assets and investments. Franchisees should look for consistency and stability in these financial metrics as indicators of a well-managed franchise system.