What was the operating lease cost for City Wide in 2023?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|
| Operating lease cost | $ 1 14,922 | $ 1 14,922 | $ 114,922 | |||||
| Operating cash flows from operating leases | 2 03,570 | 2 03,570 | 203,570 | |||||
| once the EBITDA targets have been achieved or are probable of being achieved. | ||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Expense for the years | ended December | 31, 2024 | and | 2023 | were approximately | $78,000 | and | $389,000, |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the operating lease cost for the company in 2023 was $114,922. This figure reflects the expense City Wide incurred for leasing property or equipment during that year. This cost is a component of the company's overall financial obligations and is separate from operating cash flows from operating leases, which were $203,570 in 2023.
For a prospective franchisee, understanding City Wide's operating lease costs can provide insight into the financial health and stability of the franchisor. While this figure pertains specifically to City Wide's corporate operations, it demonstrates the company's approach to managing lease obligations, which may indirectly affect franchisees through the support and resources City Wide can provide. Franchisees typically have their own separate lease obligations for their individual locations.
It's important to note that the expense for the years ended December 31, 2023, was approximately $389,000. This figure is distinct from the operating lease cost and likely encompasses a broader range of operational expenses. Reviewing these figures in the context of City Wide's overall financial statements can help potential franchisees assess the franchisor's financial management and stability.