What was the operating lease cost for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
any's lease agreement does not contain any material residual value guarantees or material restrictive covenants.
As of December 31, 2024, the Company has not entered into additional operating leases that have not yet commenced.
Quantitative Disclosures
The lease cost and other required information for the years ended December 31, 2024, 2023, and 2022 are:
| 2024 | 2023 | 2022 |
|---|
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the operating lease cost for the company in 2022 was $114,922. This figure represents the expense City Wide incurred for leasing property or equipment during that year. Operating leases are short-term leases where the asset is not owned by the company.
For a prospective franchisee, understanding the franchisor's lease costs can provide insight into the company's financial obligations and how they manage their resources. While this specific figure doesn't directly impact a franchisee's costs, it contributes to the overall financial health of City Wide, which can indirectly affect the support and services they provide to franchisees.
It's also worth noting that the weighted-average remaining lease term for operating leases was 7.75 years in 2022, with a weighted-average discount rate of 1.63%. These metrics offer additional context about the nature and terms of City Wide's lease agreements during that period.