What is the service requirement, as defined in the Supplemental Executive Retirement Plan, for selected officers to receive benefits under City Wide's unfunded deferred compensation agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
bstantially all employees. The Company's contributions to the plan are discretionary, to be determined by the Company annually. Contributions to the plan were approximately $215,000, $176,000, and $138,000 for the years ended December 31, 2024, 2023, and 2022, respectively.
Note 7. Deferred Compensation Agreements
Supplemental Executive Retirement Plan
The Company has an unfunded deferred compensation agreement with selected officers that provides benefit
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the Supplemental Executive Retirement Plan provides benefits to selected officers upon achieving five years of service, as defined in the plan. This is part of an unfunded deferred compensation agreement. The company accrues the liability for discretionary employer contributions using the straight-line method over the remaining years until the full eligibility date.
For a prospective franchisee, this information is relevant as it provides insight into how City Wide compensates its executives. While it doesn't directly impact the franchisee's day-to-day operations, it offers a glimpse into the company's overall financial management and long-term planning.
The expenses associated with this plan for the years ended December 31, 2024, 2023, and 2022 were approximately $378,000, $225,000, and $119,000, respectively. These figures indicate the financial commitment City Wide has made to its executives under this retirement plan.