What was the total amount of City Wide's other deferred income in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current Liabilities | ||||||
| Accounts payable | $ 16,356,455 | $ 13,026,131 | $ 9,791,091 | |||
| Accrued expenses | 1,533,826 | 889,963 | 776,610 | |||
| Current portion of operating lease liabilities | 188,516 | 182,963 | 180,007 | |||
| Deferred franchise revenue, current | 740,924 | 692,473 | 605,215 | |||
| Other deferred income | 715,920 | 358,640 | 225,115 | |||
| Total current liabilities | 19,535,641 | 15,150,170 | 11,578,038 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the company's other deferred income totaled $715,920 in 2024. This figure is part of the current liabilities reported on City Wide's balance sheets. For comparison, the other deferred income was $358,640 in 2023 and $225,115 in 2022.
Deferred income typically represents payments City Wide has received for services or products that have not yet been fully provided or delivered. This liability reflects City Wide's obligation to provide those future services or products. The increase in other deferred income from 2022 to 2024 suggests a growing backlog of services or products that City Wide is obligated to deliver in the future.
For a prospective franchisee, understanding deferred income is important because it provides insight into the company's financial obligations and how it manages its revenue recognition. A significant increase in deferred income could indicate strong sales growth, but it also highlights the importance of City Wide fulfilling its future obligations to maintain customer satisfaction and financial stability. Franchisees may want to inquire about the nature of 'other deferred income' to fully understand what it comprises.