What was the value of City Wide's accrued expenses in 2023?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||
|---|---|---|---|---|
| ASSETS | ||||
| Current Assets | ||||
| Cash and cash equivalents | $ 24,273,328 | $ | 17,836,030 | $ 20,166,393 |
| Accounts receivable, net of allowance | ||||
| 2024 - $132,811, 2023 - $0, 2022 - $0 | 5,389,631 | 4,711,498 | 4,120,583 | |
| Notes receivable, current maturities | 97,482 | 143,061 | 337,830 | |
| Deferred franchise costs, current portion | 159,494 | 150,281 | 146,607 | |
| Prepaid expenses | 968,181 | 644,999 | 628,582 | |
| Inventory | 16,768 | 75,493 | 75,418 | |
| Total current assets | 30,904,884 | 23,561,362 | 25,475,413 | |
| Property and Equipment, net | 1,390,853 | 2,018,516 | 3,081,584 | |
| Right-of-Use Asset - Operating Leases, net | 604,257 | 698,572 | 789,931 | |
| Other Assets | ||||
| Notes receivable, less current maturities | 4,133,296 | 4,133,296 | 4,158,686 | |
| 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 |
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 accrued expenses in 2023 were valued at $889,963. This figure represents the total current accrued expenses for City Wide Franchise Company, Inc. as of the end of that fiscal year.
Accrued expenses typically include obligations that City Wide has incurred but not yet paid, such as salaries, utilities, or rent. For a prospective franchisee, understanding the franchisor's accrued expenses can provide insight into the company's short-term financial obligations and overall financial health. A significant increase in accrued expenses from one year to the next could indicate potential cash flow issues or changes in accounting practices.
It's important to note that this figure only reflects the accrued expenses of City Wide itself and its subsidiaries, not those of individual franchisees. Franchisees will also have their own accrued expenses related to their specific business operations. Reviewing these figures in conjunction with other financial statement data can help potential franchisees assess the financial stability of City Wide.