What was the amount of advances to affiliates for City Publications in 2024?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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Estimated Recognition of Deferred Franchise Fees
Estimated revenues and franchise acquisition costs to be recognized in future periods related to deferred franchise fees reported as of December 31, 2024, is as follows:
| Non-refundable Franchise Fees | ||
|---|---|---|
| Year ending December 31: | ||
| 2025 | $ | 29,393 |
| 2026 | 22,613 | |
| 2027 | 17,940 | |
| 2028 | 11,880 | |
| $ | 81,826 |
NOTE 3 – RELATED PARTY TRANSACTIONS
During the year ended December 31, 2024, 2023, and 2022, the Company provided management and advertising services the Company's
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, during the year ending December 31, 2024, City Publications advanced $145,012, net, to support its affiliate operations. This is an increase from the $67,140 advanced in 2023 and the $50,894 advanced in 2022.
As of December 31, 2024, the total advances due from affiliates amounted to $1,994,105, compared to $1,849,093 as of December 31, 2023. These advances do not bear 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 related party transaction indicates how City Publications financially supports its affiliates. The lack of interest and defined repayment terms on these advances might suggest a flexible financial relationship between City Publications and its affiliates. However, it is important to note that these transactions could potentially impact the financial stability of City Publications, and a franchisee should consider this when evaluating the overall financial health of the company.