What was the bad debt expense for City Publications for the year ended December 31, 2024?
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 for the year ending December 31, 2024, was $312. This figure represents the amount of accounts receivable that City Publications deemed uncollectible during that fiscal year.
For a prospective franchisee, understanding the bad debt expense can provide insight into the financial health and risk management practices of City Publications. A low bad debt expense, as seen in 2024, could indicate effective credit policies and collection efforts. However, it is important to consider this figure in the context of overall revenues and industry benchmarks to assess its true impact.
In comparison, the bad debt expense for City Publications was $0 in 2023 and $26,102 in 2022. The fluctuation in bad debt expense over these three years suggests that the uncollectible debt can vary significantly from year to year. A potential franchisee should investigate the reasons for these fluctuations and how City Publications manages and accounts for bad debt.
It would be prudent for a prospective City Publications franchisee to inquire about the company's policies for managing credit risk, the criteria used to determine when an account is deemed uncollectible, and any trends in bad debt expense over a longer period. This information will help in evaluating the financial stability and operational efficiency of the franchisor.