What was the depreciation 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 depreciation expense for the company in 2022 was $3,000. This figure is part of the consolidated statements of operations for the years ending December 31, 2024, 2023, and 2022. Depreciation is a non-cash expense that reflects the reduction in value of an asset over time due to wear and tear, obsolescence, or other factors.
For a prospective City Publications franchisee, understanding the depreciation expense is important for assessing the overall financial health and profitability of the franchisor. While the depreciation expense itself doesn't directly impact the franchisee's operations, it is an indicator of the franchisor's investment in assets and how those assets are being utilized. A consistent depreciation expense, as seen here, might suggest a stable asset base.
It's worth noting that the depreciation expense is a relatively small amount compared to other operating expenses such as compensation and related costs, general and administrative expenses, and franchise-related costs. This suggests that City Publications may not have a significant investment in depreciating assets, or that the depreciation method used results in lower annual expenses. Franchisees should consider this in the context of the overall financial performance of City Publications and how it might affect the support and resources available to them.