What were the royalty revenues for City Wide Franchise Inc. (USA) company in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
uarterly installments through November 30, 2025. Interest is charged at 2%. As of the years ended December 31, 2024, 2023, and 2022, the remaining principal balance due on this loan was $4,133,296, $4,133,296, and $3,753,551, respectively.
The Company has $199,390 of accounts receivable from related parties in the ordinary course of business as of December 31, 2024.
The Company regularly performs services for related parties that are in the Company's normal course
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the company recognized royalty revenues of approximately $3,931,000 for the year ended December 31, 2024. This figure reflects the income City Wide Franchise Company, Inc. & Subsidiaries earned from its franchisees in the form of royalty payments during that year. Royalty payments are a standard component of franchise agreements, typically calculated as a percentage of the franchisee's gross sales.
For a prospective City Wide franchisee, understanding the franchisor's royalty revenue is important for several reasons. It provides insight into the financial stability and revenue streams of the franchisor. A consistent and growing royalty revenue indicates a healthy and expanding franchise system. It also highlights the franchisor's reliance on franchisee success, aligning the interests of both parties.
Furthermore, the FDD indicates that City Wide also recognized revenue of approximately $847,000 in other franchise goods and services for the year ended December 31, 2024. In addition to royalties, City Wide also earns revenue from services performed for related parties. The company recognized revenue of approximately $847,000 in other franchise goods and services for the year ended December 31, 2024. These related-party transactions and other revenue streams contribute to the overall financial health of City Wide.