What was the total amount of City Wide's long-term liabilities in 2023?
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 | |||
| Long-Term Liabilities | ||||||
| Operating lease liabilities, less current portion | 976,357 | 1,164,873 | 1,347,836 | |||
| Deferred franchise revenue, net of current portion | 3,716,533 | 3,618,971 | 3,284,052 | |||
| Deferred compensation | 895,020 | 780,228 | 310,936 | |||
| Other liabilities | 276,776 | - | - | |||
| Refundable advance | 422,723 | 2,041,208 | - | |||
| Total long-term liabilities | 6,287,409 | 7,605,280 | 4,942,824 |
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 total long-term liabilities in 2023 amounted to $7,605,280. This figure represents the accumulation of several specific long-term debts and obligations that City Wide had not yet satisfied as of the end of that fiscal year. These liabilities include obligations such as operating lease liabilities (less the current portion), deferred franchise revenue (net of the current portion), deferred compensation, other liabilities, and refundable advances.
For a prospective City Wide franchisee, understanding the franchisor's long-term liabilities can provide insights into the company's financial stability and its ability to meet its long-term obligations. A high level of long-term liabilities might indicate that the company has significant financial commitments that could impact its future performance and resource allocation. Conversely, a lower level of long-term liabilities could suggest a more financially conservative approach and greater financial flexibility.
It's important to note the specific components contributing to City Wide's total long-term liabilities. For instance, 'Operating lease liabilities, less current portion' reflects the company's obligations for leased properties or equipment beyond the upcoming year. 'Deferred franchise revenue, net of current portion' represents payments received from franchisees for services or rights that City Wide has yet to fully deliver. 'Deferred compensation' typically involves obligations to employees or executives for compensation that will be paid out in the future. 'Refundable advance' likely refers to funds received that must be returned under certain conditions. 'Other liabilities' may include a variety of miscellaneous long-term obligations.
Franchisees should consider these liabilities in the context of City Wide's overall financial health, including its assets, revenues, and profitability. Reviewing trends in these liabilities over several years, as presented in the table, can also provide a more comprehensive understanding of the company's financial management and risk profile. Consulting with a financial advisor to interpret these figures in relation to the franchise opportunity is advisable.