What was the income (loss) for City Wide on January 1, 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) | $ 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 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the income (loss) on January 1, 2022, was $(5,506). This figure represents the company's accumulated earnings or deficit at the beginning of the fiscal year. It is important to note that this is a consolidated figure, reflecting the financial performance of City Wide Franchise Company, Inc. and its subsidiaries.
This number is a starting point for understanding City Wide's financial trajectory during 2022. The document further indicates a net income of $10,941,550 and other comprehensive income of $26,999 during the year. However, distributions of $(8,431,640) were made. These factors contributed to the ending income (loss) balance of $21,493 on December 31, 2022.
A prospective franchisee should consider this information in the context of City Wide's overall financial health and performance. While the initial loss was relatively small, the company's ability to generate substantial net income and manage distributions is crucial for long-term stability. Reviewing these figures over several years, as presented in the FDD, provides a more comprehensive understanding of the franchisor's financial management and potential risks or opportunities.
It is also important for potential franchisees to consult with a financial advisor to fully understand the implications of these financial statements and how they might impact their investment in a City Wide franchise. Understanding the franchisor's financial stability is a critical part of the due diligence process.