What was the retained earnings for City Wide Company, Inc. & Subsidiaries as of January 1, 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Interest expense | (234) | (184) | 131 | | Other income | 858,348 | 406,379 | 176,453 | | Total other income (expense) | 709,353 | (1,333,827) | (1,007,944) | | Net Income | 19,161,078 | 14,196,288 | 10,941,550 | | Other comprehensive income (loss) | 39,507 | (6,653) | 26,999 | | Comprehensive Income | $ 19,200,585 | $ 14,189,635 | $ 10,968,549 |
| City | Wide Franc | chise | Company, | Inc. & Subsidiari | ies |
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Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the retained earnings for City Wide Franchise Company, Inc. & Subsidiaries as of January 1, 2022, was $15,459,388. This figure represents the accumulated profits of the company that have been retained for use in the business rather than distributed as dividends to owners. It's a key indicator of the company's financial health and its ability to reinvest in growth.
Retained earnings are an important metric for prospective franchisees to consider because they reflect the financial stability and profitability of the franchisor. A strong retained earnings balance suggests that City Wide has been successful in generating profits and managing its finances effectively. This can provide reassurance to franchisees about the franchisor's ability to support their operations and invest in the brand's future.
However, it's also important to consider other factors when evaluating a franchisor's financial health. For example, franchisees should review the company's balance sheet, income statement, and cash flow statement to get a complete picture of its financial performance. They should also consider the company's debt levels, its ability to generate cash flow, and its overall financial strategy. Examining these factors in addition to retained earnings will give a more comprehensive understanding of the franchisor's financial strength and stability.
Ultimately, understanding the franchisor's financial position, including retained earnings, is a critical part of the due diligence process for any prospective franchisee. It helps assess the risks and potential rewards associated with investing in the franchise system.