What was the net value of City Wide's property and equipment in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Property and equipment consists of the following at December 31, 2024, 2023, and 2022: | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Leasehold improvements | $ 1,253,640 | $ 1,253,640 | $ 1,253,640 | |
| Automobiles | 43,294 | 43,294 | 43,294 | |
| Office furniture and equipment | 346,966 | 336,949 | 336,949 | |
| Computer equipment | 148,679 | 148,679 | 148,679 | |
| Computer software | 5,526,191 | 5,163,959 | 5,163,959 | |
| Telephone equipment | 6,976 | 6,976 | 6,976 | |
| 7,325,746 | 6,953,497 | 6,953,497 | ||
| Less: accumulated depreciation | (5,934,893) | (4,934,981) | (3,871,913) | |
| Property and equipment, net | $ 1,390,853 | $ 2,018,516 | $ 3,081,584 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the net value of property and equipment as of December 31, 2024, was $1,390,853. This figure is calculated by subtracting accumulated depreciation from the total value of City Wide's assets, including leasehold improvements, automobiles, office furniture and equipment, computer equipment, computer software, and telephone equipment.
For a prospective franchisee, understanding the net value of City Wide's property and equipment can provide insight into the company's financial health and investment in its infrastructure. It reflects the tangible assets City Wide owns and uses to support its operations. The FDD also lists the net value of property and equipment for the prior years, 2023 and 2022, which were $2,018,516 and $3,081,584, respectively.
The decrease in net property and equipment value from 2022 to 2024 could be due to increased depreciation, disposal of assets, or a combination of both. A potential franchisee may want to inquire about the reasons for this change to better understand City Wide's capital expenditure and asset management strategies. Reviewing these figures in the FDD helps potential franchisees assess the financial stability and operational investments of City Wide.