What was the total value of City Wide's long-term liabilities 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 | |
|---|---|---|---|---|---|
| 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 |
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| 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 |
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 long-term liabilities as of December 31, 2024, were $6,287,409. This figure represents the consolidated total, which includes $6,041,934 for City Wide Franchise Company, Inc. and $245,475 for City Wide Franchise of Canada, Inc. There were no long-term liabilities listed for City Wide Franchise International, Inc. The long-term liabilities consist of several components, including operating lease liabilities less current portion, deferred franchise revenue net of current portion, deferred compensation, accrued expenses long-term, and refundable advance.
For a prospective City Wide franchisee, understanding the franchisor's long-term liabilities is crucial as it provides insight into the company's financial obligations and stability. A high level of long-term liabilities could indicate significant future payment obligations, which might affect the franchisor's ability to support its franchisees or invest in the brand's growth. Conversely, a manageable level of long-term liabilities suggests a more stable financial position.
It is important to note that these figures are based on an audit, offering a degree of assurance regarding their accuracy. However, potential franchisees should still consider these liabilities in the context of City Wide's overall financial health, including its assets, revenues, and profitability. Consulting with a financial advisor to review these financial statements is advisable to fully understand the implications for the franchise opportunity.
Comparing these liabilities to previous years can also provide valuable insights. The 2025 FDD shows that City Wide's total long-term liabilities were $7,605,280 in 2023 and $4,942,824 in 2022. The trend in these liabilities, whether increasing or decreasing, can indicate changes in the company's financial strategy and risk profile. A prospective franchisee should investigate the reasons behind any significant changes in these figures to assess the potential impact on the franchise system.