What was the value of City Wide's leasehold improvements in 2022?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
| Property and equipment consists of the following at December 31, 2024, 2023, and 2022: | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| Leasehold improvements | $ 1,253,640 | $ 1,253,640 | $ 1,253,640 |
Source: Item 23 — RECEIPT (FDD pages 65–271)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, the value of leasehold improvements as of December 31, 2022, was $1,253,640. This figure represents the cost of improvements made to leased properties that City Wide uses for its operations. Leasehold improvements are typically capitalized and depreciated over the term of the lease or the useful life of the improvement, whichever is shorter.
For a prospective franchisee, understanding the value of leasehold improvements can provide insight into City Wide's investment in its physical locations and infrastructure. It's important to note that this figure reflects the total value for City Wide and its subsidiaries, not the investment required for an individual franchise location. Franchisees usually incur their own separate costs for leasehold improvements at their specific business locations.
It is also important to consider the accumulated depreciation against these leasehold improvements, which reduces the net value of these assets over time. The FDD also lists the operating lease costs for 2022 as $114,922 and operating cash flows from operating leases as $203,570. Reviewing these figures in conjunction with the leasehold improvements can provide a more comprehensive view of City Wide's financial obligations and asset management related to leased properties.