What is the par value of City Wide's Class B nonvoting common stock?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Stockholders' Equity (Deficit) | | | | | | | Common stock | | | | | | | Class A voting, $.01 par value; 300,000 shares | | authorized, 210,000 shares issued and outstanding | 2,100 | - | - | - | 2,100 | | Class B nonvoting, $.01 par value; 30,000,000 shares | | authorized, 21,000,000 shares issued and | | outstanding | 210,000 | - | - | - | 210,000 | | Additional paid-in capital | 366,366 | - | - | - | 366,366 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the par value for Class B nonvoting common stock is $0.01 per share. The company has authorized 30,000,000 shares of Class B stock, with 21,000,000 shares currently issued and outstanding. This information is detailed in the liabilities and stockholders' equity section of the financial statements.
The par value is a nominal value assigned to the stock upon its issuance and is typically a very small amount. It is important to note that the par value does not reflect the market value or the price at which the stock is traded. The additional paid-in capital for both Class A and Class B stocks is listed as $366,366.
For a prospective City Wide franchisee, understanding the par value of the company's stock may not have a direct impact on their day-to-day operations. However, it provides insight into the company's capitalization structure and overall financial health. Reviewing the equity section of the balance sheet helps potential franchisees assess the financial stability of City Wide.