What was the depreciation expense for City Publications in 2023?
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 related costs | 244,917 | 212,220 | 150,427 | |
| Advertising and promotion | 29,375 | 32,623 | 15,369 | |
| Professional fees | 26,418 | 41,310 | (4,174) | |
| Bad 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 |
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 2023 was $3,000. This figure is part of the total operating expenses, which amounted to $1,172,585 for the same year.
Depreciation expense represents the allocation of the cost of tangible assets over their useful lives. For a prospective City Publications franchisee, understanding this expense is important as it reflects the wear and tear on assets used by the company, such as equipment or software. While $3,000 is a relatively small amount compared to other operating expenses, it's a consistent expense, as the depreciation expense was also $3,000 in 2022 and 2024.
Reviewing the financial statements, including the depreciation expense, helps potential franchisees assess the overall financial health and stability of City Publications. It's also worth noting that these figures are specific to the franchisor's operations and may not directly translate to the franchisee's own potential expenses, which would depend on their specific assets and business operations.