What was the effect of foreign currency translation (gain) loss for City Wide in 2023?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| - | | - | - | | 39,507 | 39,507 | | Distributions | | | | | | | (16,582,517) | | | (16,582,517) | | Balance December 31, 2024 | $ | 2,100 | $ | 210,000 | $ | 366,366 | $ 13,031,512 | $ | 54,347 | $ 13,664,325 |
City Wide Franchise Company, Inc. & Subsidiaries Consolidated Statements of Cash Flows Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Operating Activities | |||
| Net income | $ 19,161,078 | $ 14,196,288 | $ 10,941,550 |
| Ite |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the effect of foreign currency translation resulted in a gain loss of $(6,653) in 2023. This figure is part of the broader statement of cash flows, specifically within the operating activities section.
For a prospective City Wide franchisee, understanding the impact of foreign currency translation is crucial, especially if the franchise operates internationally or deals with foreign transactions. A negative value, as seen in 2023, indicates a loss due to currency fluctuations. This loss can affect the overall profitability of City Wide, and by extension, the financial performance of individual franchise units if they are involved in cross-border activities.
It's important to note that these gains or losses are due to changes in exchange rates when translating the financial statements of City Wide's Canadian operations into U.S. dollars. Franchisees should consider these potential fluctuations when assessing the financial stability and performance of the overall City Wide franchise system. While this specific figure is relatively small, it demonstrates the potential impact of currency exchange rates on the company's financials.