For City Wide leases, what components are combined when calculating the ROU assets and lease liabilities?

According to City Wide's 2025 Franchise Disclosure Document, when calculating the ROU (Right-of-Use) assets and lease liabilities for all leases, City Wide combines both lease and nonlease components. These nonlease components include common area costs and other maintenance costs.

For a prospective franchisee, this means that the financial statements will reflect a combined value that includes not only the base lease payments but also additional costs associated with the property. This approach provides a comprehensive view of the total cost of leasing, which can aid in budgeting and financial planning.

It is important for franchisees to understand all components included in their lease agreements to accurately assess their financial obligations. Combining these costs ensures that all related expenses are considered when evaluating the financial impact of the lease on City Wide's financial statements.