What was the reported net value of property and equipment for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
r the years ended December 31, 2024, 2023, and 2022 there were four, four, and two franchises operating in Canada, respectively, which are not reflected in the table above. There are no active franchises in other international markets.
Note 4. Property and Equipment
Property and equipment consists of the following at December 31, 2024, 2023, and 2022:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Leasehold improvements | $ 1,253,640 | $ 1,253,640 | $ 1,253,640 |
| Automobiles | 43,294 | 43,294 | 43,294 |
| Office furniture and equipment | 346,966 | 336,949 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the net value of property and equipment in 2022 was $3,081,584. This figure represents the depreciated value of City Wide's assets such as leasehold improvements, automobiles, office furniture and equipment, computer equipment, computer software, and telephone equipment. The initial gross value of these assets totaled $6,953,497, but after deducting accumulated depreciation of $3,871,913, the net value was $3,081,584.
For a prospective City Wide franchisee, understanding the net value of property and equipment can provide insights into the company's capital investments and asset management strategies. It's important to note that these figures reflect the financial position of City Wide corporate and not the financial standing or required investments of individual franchisees. Franchisees will typically have their own separate investments in equipment and property necessary to operate their specific franchise locations.
Reviewing these figures over several years, as presented in the FDD, can also reveal trends in City Wide's investment in its infrastructure. For instance, the net value of property and equipment decreased from $3,081,584 in 2022 to $1,390,853 in 2024. This decrease could be due to increased depreciation, asset disposal, or changes in investment strategy. Prospective franchisees should consider these trends in the context of City Wide's overall financial health and strategic direction.
It is also important to note that the figures presented in the financial statements are based on generally accepted accounting principles (GAAP) and are audited by an independent accounting firm. This provides a level of assurance regarding the accuracy and reliability of the information. However, prospective franchisees should still conduct their own due diligence and consult with financial advisors to fully understand the financial implications of investing in a City Wide franchise.