What was the total value of City Wide's current liabilities as of December 31, 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 | $ 13,026,131 | $ 9,791,091 |
| Accrued expenses | 1,533,826 | 889,963 | 776,610 |
| Current portion of operating lease liabilities | 188,516 | 182,963 | 180,007 |
| Deferred franchise revenue, current | 740,924 | 692,473 | 605,215 |
| Other deferred income | 715,920 | 358,640 | 225,115 |
| Total current liabilities | 19,535,641 | 15,150,170 | 11,578,038 |
| 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 |
| Total liabilities | 25,823,050 | 22,755,450 | 16,520,862 |
| Stockholders' Equity | |||
| Common stock | |||
| Class A voting, $.01 par value; 300,000 shares | |||
| authorized, 210,000 shares issued and outstanding | 2,100 | 2,100 | 2,100 |
| Class B nonvoting, $.01 par value; 30,000,000 shares | |||
| authorized, 21,000,000 shares issued and outstanding | 210,000 | 210,000 | 210,000 |
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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 as of December 31, 2024, were $19,535,641. Current liabilities are obligations due within one year, and this figure represents the consolidated total across City Wide Franchise Company, Inc. and its subsidiaries. These liabilities include accounts payable, accrued expenses, the current portion of operating lease liabilities, deferred franchise revenue, and other deferred income.
For a prospective City Wide franchisee, understanding the franchisor's financial health is crucial. A significant amount of current liabilities could indicate potential financial strain on the franchisor, which might affect the support and services they can provide to franchisees. It is important to note that the total liabilities for City Wide as of December 31, 2024, were $25,823,050, which includes both current and long-term liabilities.
Reviewing the trend of City Wide's liabilities over the past few years can provide additional insight. The FDD includes figures for 2023 and 2022, allowing potential franchisees to assess whether the liabilities are increasing or decreasing. Comparing these figures to industry benchmarks and the financial performance of other franchise systems can further inform a franchisee's decision-making process. It is also advisable to consult with a financial advisor to fully understand the implications of these liabilities.
Prospective franchisees should also consider the components of the current liabilities. For example, a large amount of deferred revenue might indicate strong future sales, while a high level of accounts payable could suggest challenges in managing vendor relationships. Understanding these details can provide a more nuanced view of City Wide's financial stability and its potential impact on the franchise network.