What was the depreciation expense for City Wide Franchise Inc. (USA) company in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Property and Equipment
Property and equipment acquisitions are stated at cost, less accumulated depreciation. Depreciation is charged to expense on the straight-line basis over the estimated useful life of each asset.
The estimated useful lives for each major depreciable classification of property and equipment are as follows:
Leasehold improvements Shorter of lease term or useful life Automobiles 5 years Office furniture and equipment 3 to 5 years Computer equipment 5 years Computer software 3 to 10 years Telephone equipment 5 years
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
The 2025 City Wide Franchise Disclosure Document does not explicitly state the depreciation expense for City Wide Franchise Company, Inc. for the year 2024. However, the FDD does provide information on how City Wide accounts for property and equipment, including depreciation methods and estimated useful lives of assets.
Specifically, the FDD mentions that property and equipment are recorded at cost, net of accumulated depreciation, and that depreciation is calculated using the straight-line method over the estimated useful life of each asset. The estimated useful lives are provided for various asset categories, such as leasehold improvements, automobiles (5 years), office furniture and equipment (3 to 5 years), computer equipment (5 years), computer software (3 to 10 years), and telephone equipment (5 years).
To determine the depreciation expense, a prospective City Wide franchisee should ask the franchisor directly for the specific depreciation expense amount for 2024. Additionally, they could request a detailed breakdown of the company's fixed assets and their associated depreciation schedules to better understand how depreciation expense is calculated and allocated.