When is revenue recognized for 'other goods and services' provided by City Wide to its franchisees?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Other goods and services revenue are for technology and hosting fees, training, and professional services, such as IT, call centers and accounting. The revenue is recognized as services are performed.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, revenue from 'other goods and services' is recognized as services are performed. These 'other goods and services' include technology and hosting fees, training, and professional services like IT, call centers, and accounting.
This means that City Wide recognizes the revenue when they actually deliver the service to the franchisee, rather than when the franchisee pays for it. For example, if City Wide provides IT support to a franchisee in a given month, they recognize the revenue for that service in that same month.
For a prospective franchisee, this accounting practice indicates that City Wide's financial reporting aligns with the actual delivery of services. It also suggests that City Wide has systems in place to track and match revenue with the provision of these specific services.