What was the total value of City Wide's property and equipment, net, as of December 31, 2024?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
nancial Statements December 31, 2024, 2023, and 2022**
Note 10. Subsequent Events
Subsequent events have been evaluated through March 20, 2025, which is the date the consolidated financial statements were available to be issued.
City Wide Franchise Company, Inc. & Subsidiaries Consolidating Schedule – Balance Sheet December 31, 2024
| 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, le |
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 property and equipment, net, for the consolidated company as of December 31, 2024, was $1,390,853. This figure represents the original cost of City Wide's property and equipment, less any accumulated depreciation. Depreciation is the allocation of the cost of an asset over its useful life, reflecting the gradual decline in value due to wear and tear or obsolescence.
For a prospective franchisee, this number provides insight into the capital investment City Wide has made in its own infrastructure. It is important to note that this value reflects the net amount after depreciation, which means the actual original investment was higher. The FDD also details the depreciation methods used, which is the straight-line basis over the estimated useful life of each asset. The estimated useful lives range from the shorter of the lease term or useful life for leasehold improvements, to 3 to 10 years for computer software.
Understanding the types of assets City Wide owns and their depreciation schedules can help a franchisee better assess the company's financial management and investment strategies. It's also worth noting that during 2024, City Wide recognized an impairment loss of $1,454,554 related to a software subscription that was abandoned. This indicates a potential risk in technology investments and the importance of due diligence in evaluating such ventures.