What was the reported value of City Wide's software subscription asset in 2023?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
have not been subjected to the auditing procedures applied in the audit of the consolidated financial statements and accordingly, we do not express an opinion or provide any assurance on it.
Kansas City, Missouri March 20, 2025
City Wide Franchise Company, Inc. & Subsidiaries Consolidated Balance Sheets December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| ASSETS | ||||
| Current Assets | ||||
| Cash and cash equivalents | $ 24,273,328 | $ | 17,836,030 | $ 20,166,393 |
| Accounts receivable, net of allowance | ||||
| 2024 - $132,811, 2023 - $0, 2022 - $0 | 5,389,631 | 4,711,498 | 4,120,583 | |
| Notes receivable, current maturities | 97,482 | 143,061 | 337,830 | |
| Deferred franchise costs, current portion | 159,494 | 150,281 | 146,607 | |
| Prepaid expenses | 968,181 | 644,999 | 628,582 | |
| Inventory | 16,768 | 75,493 | 75,418 | |
| Total current assets | 30,904,884 | 23,561,362 | 25,475,413 | |
| Property and Equipment, net | 1,390,853 | 2,018,516 | 3,081,584 | |
| Right-of-Use Asset - Operating Leases, net | 604,257 | 698,572 | 789,931 | |
| Other Assets | ||||
| Notes receivable, less current maturities | 4,133,296 | 4,133,296 | 4,158,686 | |
| Software subscription | - | 1,522,554 | - | |
| Deferred franchise costs, net of current portion | 712,044 | 724,741 | 791,318 | |
| Cash surrender value of life insurance | 1,742,041 | 1,142,666 | 793,187 | |
| Total other assets | 6,587,381 | 7,523,257 | 5,743,191 | |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the value of their software subscription asset was $1,522,554 in 2023. This figure is part of the 'Other Assets' category on City Wide's balance sheet.
It is important to note that in 2024, City Wide abandoned this software subscription arrangement, incurring a loss of $1,454,554. This indicates that the software subscription, which was an asset in 2023, was no longer considered valuable in 2024 and was written off.
Prospective franchisees should be aware of this abandonment and the associated loss, as it may reflect on City Wide's technology strategy and the stability of its software solutions. It would be prudent for potential franchisees to inquire about the reasons for abandoning the software subscription and what alternative solutions City Wide has implemented or plans to implement.