What is the par value of City Wide's Class A voting 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 |
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 of the company's Class A voting common stock is $0.01 per share. There are 300,000 shares authorized, with 210,000 shares currently issued and outstanding.
The par value is a nominal value assigned to the stock upon its initial issuance and is typically a very small amount. It has limited significance to a franchisee. The more relevant figures are the total stockholders' equity, retained earnings, and overall financial health of City Wide, as these indicate the company's financial stability and ability to support its franchisees.
The financial statements also detail the Class B nonvoting stock, which has the same par value of $0.01 per share. However, there is a significantly larger number of authorized and outstanding shares for Class B stock (30,000,000 authorized and 21,000,000 issued and outstanding), indicating a different ownership structure and potential control dynamics within the company. A prospective franchisee should focus on the overall equity and liabilities to assess the financial risk of investing in a City Wide franchise.