What was the total amount of City Wide's long-term liabilities in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| 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 for the year 2024 amounted to $6,287,409. This figure is a sum of several components, including operating lease liabilities (less current portion), deferred franchise revenue (net of current portion), deferred compensation, other liabilities, and refundable advance.
When evaluating the financial health of City Wide, prospective franchisees should pay close attention to the composition and trends in these long-term liabilities. For instance, deferred revenue relates to franchise fees that City Wide has collected but not yet recognized as earned revenue, which could indicate future revenue streams. Operating lease liabilities reflect City Wide's obligations for leased properties and equipment, while deferred compensation represents obligations to employees or executives that will be paid out in the future.
Changes in these liabilities from year to year can provide insights into City Wide's financial management and future obligations. A decrease in long-term liabilities could indicate improved financial stability, while an increase might suggest growing future obligations. Reviewing these figures over the three years presented (2022-2024) provides a more comprehensive understanding of City Wide's financial trends and stability.