What was the total stockholders' equity (deficit) for City Wide as of December 31, 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| City Wide Franchise Company, Inc. | City Wide Franchise of Canada, Inc. | City Wide Franchise International, Inc. | Eliminating Entries | 2024 Consolidated | |
|---|---|---|---|---|---|
| ASSETS | |||||
| Current Assets | |||||
| Cash and cash equivalents | $ 23,966,250 | $ 307,078 | $ - | $ - | $ 24,273,328 |
| Accounts receivable, net of allowance | |||||
| 2024 - $158,554, 2023 - $0, 2022 - $0 | 6,233,968 | 223,313 | - | (1,067,650) | 5,389,631 |
| Notes receivable, current maturities | 97,482 | - | - | - | 97,482 |
| Deferred franchise costs, current portion | 152,894 | 6,600 | - | - | 159,494 |
| Prepaid expenses | 961,105 | - | 7,076 | - | 968,181 |
| Inventory | 16,768 | - | - | - | 16,768 |
| Total current assets | 31,428,467 | 536,991 | 7,076 | (1,067,650) | 30,904,884 |
| Property and Equipment, net | 1,390,853 | - | - | - | 1,390,853 |
| Right-of-Use Asset - Operating Leases, net | 604,257 | - | - | - | 604,257 |
| Other Assets | |||||
| Notes receivable, less current maturities | 4,133,296 | - | - | - | 4,133,296 |
| Deferred franchise costs, net of current portion | 660,544 | 51,500 | - | - | 712,044 |
| Cash surrender value of life insurance | 1,742,041 | - | - | - | 1,742,041 |
| Total other assets | 6,535,881 | 51,500 | - | - | 6,587,381 |
| Total assets | $ 39,959,458 | $ 588,491 | $ 7,076 | $ (1,067,650) | $ 39,487,375 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||||
| Current Liabilities | |||||
| Accounts payable | $ 16,107,270 | $ 930,438 | $ 386,397 | $ (1,067,650) | $ 16,356,455 |
| Accrued expenses | 1,525,659 | - | 8,167 | - | 1,533,826 |
| Current portion of operating lease liabilities | 188,516 | - | - | - | 188,516 |
| Deferred franchise revenue, current | 705,734 | 35,190 | - | - | 740,924 |
| Other deferred income | 715,920 | - | - | - | 715,920 |
| Total current liabilities | 19,243,099 | 965,628 | 394,564 | (1,067,650) | 19,535,641 |
| Long-term Liabilities | 976,357 | - | - | - | 976,357 |
| Operating lease liabilities, less current portion | |||||
| Deferred franchise revenue, net of current portion | 3,471,058 | 245,475 | - | - | 3,716,533 |
| Deferred compensation | 895,020 | - | - | - | 895,020 |
| Accrued expenses, long-term | 276,776 | - | - | - | 276,776 |
| Refundable advance | 422,723 | - | - | - | 422,723 |
| Total long-term liabilities | 6,041,934 | 245,475 | - | - | 6,287,409 |
| Total liabilities | 25,285,033 | 1,211,103 | 394,564 | (1,067,650) | 25,823,050 |
| Stockholders' Equity (Deficit) | |||||
| Common stock | |||||
| Class A voting, $.01 par value; 300,000 shares | |||||
| authorized, 210,000 shares issued and outstanding | 2,100 | - | - | - | 2,100 |
| Class B nonvoting, $.01 par value; |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the total stockholders' equity as of December 31, 2024, was $13,664,325. This figure represents the consolidated total for City Wide Franchise Company, Inc. and its subsidiaries. It is calculated by summing the values of common stock (Class A and Class B), additional paid-in capital, accumulated other comprehensive income, and retained earnings (or accumulated deficit).
The components of the total stockholders' equity include $2,100 in Class A voting common stock, $210,000 in Class B nonvoting common stock, $366,366 in additional paid-in capital, $54,347 in accumulated other comprehensive income, and $13,031,512 in retained earnings. These individual values contribute to the overall financial health and stability of City Wide.
For a prospective franchisee, understanding the stockholders' equity is crucial as it reflects the net worth of the company. A positive and growing stockholders' equity generally indicates a financially stable franchisor. This can provide reassurance to franchisees about the franchisor's ability to support their operations and invest in the brand's future. It's important to note that while a healthy stockholders' equity is a positive sign, franchisees should also consider other financial metrics and factors when evaluating the overall strength and potential of the franchise opportunity.