What was the end of year deferred revenue for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ars ended December 31, 2024, 2023, and 2022.
The Company has determined that the nature, amount, timing and uncertainty of revenue and cash flows are primarily affected by the enterprise size of the customer.
Contract Balances
The following table provides information about the Company's receivables and deferred revenue from contracts with customers:
| 2024 | 2023 | 2022 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the end of year deferred revenue for 2022 was $4,114,382. Deferred revenue represents payments City Wide has received for services or products that have not yet been delivered or earned. This is a liability on the balance sheet because City Wide has an obligation to provide those services or products in the future.
For a prospective City Wide franchisee, understanding deferred revenue is important because it reflects the company's financial stability and its ability to fulfill future obligations. A healthy deferred revenue balance indicates that customers are paying in advance for City Wide's services, which can provide a steady stream of income.
Franchisees should monitor changes in deferred revenue over time to assess the company's growth and financial health. A significant decrease in deferred revenue could signal potential issues with customer satisfaction or service delivery. Conversely, a consistent increase in deferred revenue may indicate strong sales and customer loyalty.