What was the amount of Advances from (to) affiliates for City Publications during 2024?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Debt expense | 312 | - | 26,102 | | | Depreciation expense | 3,000 | 3,000 | 3,000 | | | TOTAL OPERATING EXPENSES | 1,140,130 | 1,172,585 | 1,153,845 | | | OPERATING INCOME | 273,141 | 99,917 | (13,378) | | | OTHER (EXPENSE) | | | | | | Interest expense | (9,194) | (414) | (460) | | | NET INCOME | $ 263,947 | $ 99,503 | $ (13,838) | |
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| Common Stock | Additional Paid-In Capital | Due From Affiliates | Retained Earnings | Total Shareholders' (Deficit) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| BALANCE, DECEMBER 31, 2021 | $ 1,000 | $ | 17,000 | $ (1,770,163) | $ 1,715,261 | $ (36,902) | |||||
| Advances from (to) affiliates | (11,790) | (11,790) | |||||||||
| Capital (distributions) | (72,470) | (72,470) | |||||||||
| Net (loss) | (13,838) | (13,838) | |||||||||
| BALANCES, DECEMBER 31, 2022 | 1,000 | 17,000 | (1,781,953) | 1,628,953 | (135,000) | ||||||
| Advances from (to) affiliates | - | - | (67,140) | - | (67,140) | ||||||
| Capital additions | - | - | - | 17,027 |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the advances from (to) affiliates in 2024 amounted to ($145,012). This figure represents the financial transactions between City Publications and its affiliates during the specified period. These advances are used to support the operations of its affiliates.
Specifically, the FDD states that during the years ended December 31, 2024, 2023, and 2022 the company advanced $145,012, $67,140, and $50,894, net to support affiliate operations. It is important to note that these advances bear no interest and have no specified repayment terms. They are classified as a component of shareholders' (deficit) because the affiliates are under common control through common ownership.
For a prospective franchisee, this indicates the level of financial interaction and support City Publications provides to its related entities. It also reflects the company's strategy in managing its affiliated businesses and how these relationships are structured from a financial perspective. Understanding these related-party transactions can offer insights into the overall financial health and operational strategies of City Publications.