What was the total value of City Wide's current liabilities in 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Software subscription | - | | 1,522,554 | - | | Deferred franchise costs, net of current portion | 712,044 | | 724,741 | 791,318 | | Cash surrender value of life insurance | 1,742,041 | | 1,142,666 | 793,187 | | Total other assets | 6,587,381 | | 7,523,257 | 5,743,191 | | | | | | | | Total assets | $ 39,487,375 | $ | 33,801,707 | $ 35,090,119 |
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||
| Current Liabilities | |||
| Accounts payable | $ 16,356,455 | $ 13,026 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the company's total current liabilities in 2024 were $19,535,641. This figure represents the sum of several short-term financial obligations, including accounts payable, accrued expenses, the current portion of operating lease liabilities, deferred franchise revenue, and other deferred income. These are debts or obligations that City Wide is expected to settle within one year.
Understanding the composition and magnitude of current liabilities is crucial for prospective franchisees. It provides insight into City Wide's short-term financial health and its ability to meet its immediate obligations. A high level of current liabilities relative to current assets could indicate potential liquidity issues, which might affect the franchisor's ability to support its franchisees or invest in the brand's growth.
It is important to note that this figure is part of a consolidated financial statement, which includes City Wide Franchise Company, Inc., its Canadian subsidiary, and its international franchise company. The individual contributions of each entity to the total current liabilities are detailed in the consolidating schedule within the FDD, offering a more granular view of the company's financial structure. Reviewing these liabilities in the context of City Wide's overall financial position, including its assets and long-term liabilities, will provide a more comprehensive understanding of the company's financial stability.