What were the distributions for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Class A | Class B | Capital | Earnings | Income (Loss) | Total | |
|---|---|---|---|---|---|---|
| Balance January 1, 2022 | $ 2,100 | $ 210,000 | $ 366,366 | $ 15,459,388 | $ (5,506) | $ 16,032,348 |
| Net income | - | - | - | 10,941,550 | - | 1 0,941,550 |
| Other comprehensive income | - | - | - | - | 26,999 | 26,999 |
| Distributions | - | - | - | ( 8,431,640) | - | (8,431,640) |
| Balance December 31, 2022 | 2,100 | 210,000 | 366,366 | 17,969,298 | 21,493 | 1 8,569,257 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the distributions for the year 2022 totaled $8,431,640. This figure represents the amount of money distributed, presumably to stockholders, from the company's earnings during that year. This information is part of the consolidated statements of income and comprehensive income audited by an independent firm.
For a prospective City Wide franchisee, understanding the company's distribution history can provide insights into its financial management and profitability. While distributions don't directly impact day-to-day franchise operations, they reflect the company's overall financial health and its ability to generate profits. A consistent pattern of distributions may indicate a stable and profitable business model.
However, it's important to consider distributions in the context of other financial metrics, such as net income and revenue growth. A high distribution amount relative to net income could suggest that the company is prioritizing short-term returns over long-term investments. Conversely, a lower distribution amount could indicate that the company is reinvesting profits back into the business to fuel future growth.
Prospective franchisees should review the complete audited financial statements in the FDD and consult with a financial advisor to assess the implications of City Wide's distribution policy on the long-term viability and attractiveness of the franchise opportunity. Understanding these financial details can help franchisees make informed decisions about their investment and future business operations.