What were the total costs of services, supplies, and equipment for City Wide before eliminating entries in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 10,452,951 | 17,969,298 | | Total stockholders' equity | 13,664,325 | 11,046,257 | 18,569,257 | | Total liabilities and stockholders' equity | $ 39,487,375 | $ 33,801,707 | $ 35,090,119 |
City Wide Franchise Company, Inc. & Subsidiaries Consolidated Statements of Income and Comprehensive Income Years Ended December 31, 2024, 2023, and 2022
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenues | |||
| Royalties | $ 29,465,788 | $ 24,303,311 | $ 20,595,555 |
| Franchise fees | 545,350 | 825,418 | 620,722 |
| Other franchise goods and services | 14,130,864 | 11,947,867 | 8,773,822 |
| Total revenues | 44,142,002 | 37,076,596 | 29,990,099 |
| Expenses | |||
| Advertising and marketing | 1,111,167 | 986,941 | 754,532 |
| Cost of service and supplies | 3,445,053 | 3,578,645 | 2,378,710 |
| Depreciation | 999,912 | 1,063,068 | 1,095,919 |
| Dues and subscriptions | 308,813 | 281,306 | 261,741 |
| Facilities | 330,973 | 313,881 | 302,197 |
| Franchise meetings and awards | 1,035,761 | 677,098 | 607,632 |
| Miscellaneous | 1,049,080 | 502,862 | 326,209 |
| Office supplies | 40,824 | 46,077 | 50,386 |
| Professional fees and services | 1,665,759 | 1,674,776 | 1,695,367 |
| Salaries and benefits | 13,682,507 | 11,875,148 | 10,021,695 |
| Taxes and licenses | 123,714 | 110,935 | 89,265 |
| Training | 16,411 | 13,436 | 20,588 |
| Travel and meals | 425,749 | 422,308 | 436,364 |
| Loss on abandonment of software subscription | 1,454,554 | - | - |
| Total expenses | 25,690,277 | 21,546,481 | 18,040,605 |
| Operating Income | 18,451,725 | 15,530,115 | 11,949,494 |
| Other Income (Expense) | |||
| Management fee | (900,000) | (2,507,195) | (1,380,004) |
| Interest income | 751,239 | 767,173 | 195,476 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the cost of service and supplies for 2024 was $3,445,053. This figure represents the direct expenses City Wide incurred for providing services and procuring necessary supplies. These costs are a significant component of the company's overall expenses and reflect the resources required to support its franchise operations.
In comparison, the cost of service and supplies for City Wide in 2023 was $3,578,645, and in 2022, it was $2,378,710. The fluctuation in these costs over the three years could be attributed to various factors, such as changes in the volume of services provided, variations in supply prices, or modifications in operational efficiency. For a prospective franchisee, understanding these historical costs is crucial for projecting future expenses and assessing the potential profitability of a City Wide franchise.
It's important to note that these figures do not include any eliminations or adjustments. The cost of service and supplies is a key metric for evaluating the financial performance of City Wide and its ability to manage its operational expenses effectively. Franchisees should consider these trends when evaluating the financial viability of investing in a City Wide franchise.