What were the distributions for City Wide in 2023?
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) | $ 1 6,032,348 |
| 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 |
| Net income | - | - | - | 14,196,288 | - | 1 4,196,288 |
| Other comprehensive loss | - | - | - | - | (6,653) | (6,653) |
| Distributions | ||||||
| - | - | - | ( 21,712,635) | - | (21,712,635) |
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 2023 totaled $(21,712,635). This figure represents the amount of money distributed to stockholders during that year.
For a prospective franchisee, understanding these distributions is crucial as it provides insight into the financial management and profitability of City Wide. Large distributions could indicate strong financial performance, but it's important to consider whether these distributions impact the company's ability to reinvest in growth or support its franchisees.
It is important to note that distributions are not necessarily indicative of the financial health of the company. Further analysis of City Wide's financial statements, including revenue, expenses, and overall profitability, is necessary to form a comprehensive understanding. A potential franchisee should consult with a financial advisor to review these figures in the context of the entire FDD and the franchise agreement.