What was the net cash used in financing activities for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Financing Activities |
|---|
| We | have audited the consolidated | financial statements | of City Wide Franchise | Company, | Inc. & | |
|---|---|---|---|---|---|---|
| Subsidiaries (“the Company”), which comprise the consolidated balance sheets as of December 31, 2024, | ||||||
| 2023, | and 2022, and the related | consolidated statements | of income and | comprehensive | income, | |
| Financing Activities | ||||||
| Distributions to stockholders | (16,582,517) | (21,339,239) | (8,431,640) | |||
| Net cash used in financing activities | (16,582,517) | (21,339,239) | (8,431,640) |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the net cash used in financing activities in 2022 was $(8,431,640). This figure represents the total cash outflow related to financing activities during that year.
For a prospective City Wide franchisee, understanding the company's cash flow from financing activities provides insight into how the company manages its debt and equity. A negative value, such as the one reported for 2022, typically indicates that City Wide used more cash for activities like paying off debt or distributing dividends than it generated from financing activities like taking on new loans.
It's important to note that this figure only reflects the parent company's financial activities and may not directly correlate with the performance or financial needs of individual franchise locations. However, it can be a useful indicator of the overall financial health and stability of City Wide as a franchise system. Franchisees should consider this information in conjunction with other financial data, such as revenue, expenses, and profitability, to gain a comprehensive understanding of the company's financial position.