What was the operating lease cost for City Wide in 2024?
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 year 2024 was $114,922. This figure represents the expense City Wide incurred for leasing office space, as detailed in the financial statements. The company leases office space at its headquarters under an operating lease with a related party, which expires in 2030 and includes a renewal option for an additional five years.
For a prospective franchisee, understanding the franchisor's lease obligations can provide insight into the financial stability and operational structure of City Wide. The consistent operating lease cost of $114,922 across 2022, 2023, and 2024 suggests a stable, predictable expense. This stability can be reassuring, as it indicates that City Wide's overhead costs related to its headquarters' lease are consistent and manageable.
It's also important to note that City Wide's lease agreement does not contain any material residual value guarantees or material restrictive covenants, which could limit financial flexibility. The weighted-average remaining lease term for operating leases was 5.75 years as of 2024, with a weighted-average discount rate of 1.63%. These details provide a comprehensive view of City Wide's lease commitments and their potential impact on the company's financial performance.
Prospective franchisees might want to inquire further about the specifics of the related-party lease agreement, including the terms of the renewal option and any potential future escalations in lease payments. Understanding these details can help franchisees assess the long-term financial health and stability of City Wide.