What was the total amount of accounts payable for City Wide in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 total accounts payable for 2022 was $9,791,091. This figure represents the company's short-term liabilities, specifically the amounts owed to suppliers and other creditors for goods and services received but not yet paid for as of December 31, 2022. Accounts payable are a crucial indicator of a company's financial health and its ability to manage its short-term obligations.
For a prospective City Wide franchisee, understanding the accounts payable is essential as it reflects the financial obligations of the company. While franchisees are not directly liable for City Wide's corporate accounts payable, the overall financial stability of the franchisor is important for the long-term success of the franchise system. A high level of accounts payable relative to assets or revenue could indicate potential financial strain, which might affect the franchisor's ability to support its franchisees.
Reviewing the trend of accounts payable over the three years presented (2022, 2023, and 2024) can provide insights into City Wide's financial management. The accounts payable increased from $9,791,091 in 2022 to $13,026,131 in 2023 and further to $16,356,455 in 2024. This increase could be due to various factors, such as increased business activity, changes in payment terms with suppliers, or strategic decisions regarding cash flow management. A prospective franchisee should consider these trends and seek clarification from City Wide regarding the reasons behind these changes to assess any potential risks or opportunities.