What was the bad debt expense for City Publications in 2022?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
shares issued and outstanding | 1,000 | 1,000 | | | Additional paid-in capital | 17,000 | 17,000 | | | Retained earnings | 1,902,107 | 1,745,483 | | | Due from affiliates | (1,994,105) | (1,849,093) | | | TOTAL SHAREHOLDERS' (DEFICIT) | (73,998) | (85,610) | | | TOTAL LIABILITIES AND SHAREHOLDERS' (DEFICIT) | $ 486,618 | $ 55,916 | |
The accompanying notes are an integral part of these financial statements.
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
| FOR THE YEARS ENDED DECEMBER 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | 2022 | ||
| REVENUES | ||||
| Franchise fees | $ 624,453 | $ 305,073 | $ 226,598 | |
| Royalty fees | 165,720 | 236,040 | 239,415 | |
| Other revenues | 322,271 | 445,561 | 448,915 | |
| Management fees | 300,827 | 285,828 | 225,539 | |
| TOTAL REVENUES | 1,413,271 | 1,272,502 | 1,140,467 | |
| OPERATING EXPENSES | ||||
| Compensation and related costs | 561,870 | 555,064 | 505,806 | |
| General and administrative | 274,238 | 328,368 | 457,315 | |
| Franchise relat |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the company's bad debt expense in 2022 was $26,102. This figure is part of the consolidated statements of operations for the years ending December 31, 2024, 2023, and 2022. Bad debt expense represents the amount of accounts receivable that City Publications estimates will not be collected.
For a prospective franchisee, understanding the bad debt expense is important as it reflects the credit risk associated with City Publications' revenue streams. A higher bad debt expense could indicate a less effective credit control policy or a customer base that struggles to pay on time. This could impact a franchisee's own cash flow and profitability, as they may also experience similar issues with their clients.
It's worth noting that the bad debt expense can fluctuate from year to year based on various factors, including economic conditions and the effectiveness of City Publications' collection efforts. In 2023, the bad debt expense was zero, while in 2024 it was $312, indicating variability in this expense. Franchisees should inquire about the reasons for these fluctuations and how City Publications supports franchisees in managing their accounts receivable and minimizing bad debt.