What was the net income for City Wide in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| City | Wide Franc | chise | Company, | Inc. & Subsidiari | ies | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| Common Stock Class A Class B | dditional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | ||||||
| Balance January 1, 2022 | $ | 2,100 | $ | 210,000 | $ | 366,366 | $ 15,459,388 | $ | (5,506) | $ 16,032,348 |
| Net income | - | - | - | 10,941,550 | - | 10,941,550 | ||||
| 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 | 18,569,257 | ||||
| Net income | - | - | - | 14,196,288 | - | 14,196,288 | ||||
| Other comprehensive loss | - | - | - | - | (6,653) | (6,653) | ||||
| Distributions | (21,712,635) | (21,712,635) | ||||||||
| Balance December 31, 2023 | 2,100 | 210,000 | 366,366 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the net income for the year 2024 was $19,161,078. This figure represents the company's profit after all expenses, including royalties, franchise fees, advertising, cost of services, depreciation, salaries, and other operating costs, have been deducted from its total revenues. This information is derived from the consolidated statements of income and comprehensive income for City Wide Franchise Company, Inc. & Subsidiaries.
For a prospective franchisee, this net income figure provides insight into the overall financial health and profitability of the City Wide franchise system. A strong net income suggests that the business model is sustainable and potentially lucrative for both the franchisor and its franchisees. It indicates that the company is effectively managing its revenues and expenses, which can instill confidence in potential investors.
It's important to note that while the franchisor's net income is a positive indicator, it doesn't directly translate to the potential earnings of an individual franchise. A franchisee's profitability will depend on various factors, including their local market conditions, operating efficiency, and ability to manage costs. Therefore, prospective franchisees should carefully review Item 19 in the FDD, which provides financial performance representations for franchisees, and conduct their own independent research to assess the potential profitability of a City Wide franchise in their specific area.
Additionally, the FDD includes audited financial statements and notes that provide further details on the company's financial performance, accounting practices, and any significant estimates or potential risks. Reviewing these documents can offer a more comprehensive understanding of City Wide's financial stability and future prospects.