What was the total value of City Wide's computer software, before depreciation, as of December 31, 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
r the years ended December 31, 2024, 2023, and 2022 there were four, four, and two franchises operating in Canada, respectively, which are not reflected in the table above. There are no active franchises in other international markets.
Note 4. Property and Equipment
Property and equipment consists of the following at December 31, 2024, 2023, and 2022:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Leasehold improvements | $ 1,253,640 | $ 1,253,640 | $ 1,253,640 |
| Automobiles | 43,294 | 43,294 | 43,294 |
| Office furniture and equipment | 346,966 | 336,949 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the total value of its computer software, before accumulated depreciation, was $5,526,191 as of December 31, 2024. This figure represents the original cost of the software before any depreciation was accounted for. Depreciation is the allocation of the cost of an asset over its useful life, reflecting the gradual decline in its value due to wear and tear, obsolescence, or other factors.
For a prospective City Wide franchisee, understanding the value of computer software before depreciation is important for assessing the company's overall financial health and investment in technology. The FDD also states that City Wide amortizes computer software over a period of 3 to 10 years. This information, combined with the depreciation expense, can provide insights into how City Wide manages its assets and technology investments.
It's also important to note that during 2024, City Wide abandoned a multi-year software subscription arrangement and incurred a loss of $1,454,554. This could indicate a change in the company's technology strategy or challenges with implementing certain software solutions. A prospective franchisee may want to inquire about the reasons for abandoning the software subscription and the potential impact on the franchise system.
Reviewing the financial statements and related notes in the FDD, including the details of property and equipment, depreciation methods, and any significant losses or impairments, is crucial for making an informed investment decision. Understanding these aspects can help a franchisee assess the financial stability and technological infrastructure of City Wide.