For City Wide, over what period is substantially all of the company's revenue recognized?

According to City Wide's 2025 Franchise Disclosure Document, substantially all of the company's revenue is recognized over time. This applies for the years ended December 31, 2024, 2023, and 2022. This means that City Wide recognizes revenue as services are performed, rather than at a single point in time. The FDD also notes that the company has determined that the nature, amount, timing and uncertainty of revenue and cash flows are primarily affected by the enterprise size of the customer.

For a prospective City Wide franchisee, this indicates that the franchisor's financial performance is tied to the ongoing delivery of services to its customers. The recognition of revenue over time aligns with the nature of the commercial janitorial and related services that City Wide franchisees provide. This approach to revenue recognition is common in service-based franchise systems.

Furthermore, the FDD specifies how different revenue streams are handled. Fixed consideration from initial franchise and territory fees is recognized straight-line over the franchise period, reflecting the continuous access to City Wide's intellectual property. Variable consideration, such as royalties and marketing fund contributions, are measured under the sales-based royalty approach. Revenue from other services is recognized as performed, proportional to the service period. Understanding these nuances can help a franchisee better interpret City Wide's financial statements and assess the stability and predictability of its revenue.