Does City Publications include pro forma financial statements in Item 21?

Based on the 2025 City Publications Franchise Disclosure Document, Item 23 includes the franchisor's financial statements. Specifically, Exhibit E to the disclosure document contains the financial statements for City Publications Franchise Group, Inc. The financial report provided is as of December 31, 2024. These financial statements include balance sheets as of December 31, 2024, and 2023, along with statements of operations, shareholders' deficit, and cash flows for the years ended December 31, 2024, and 2023, as well as notes to the financial statements.

Item 23 also includes an independent auditor's report, which expresses an opinion on the fairness of the financial statements. The auditor states that the financial statements present fairly the financial position, results of operations, and cash flows of City Publications in accordance with accounting principles generally accepted in the United States of America. The audit was conducted in accordance with auditing standards generally accepted in the United States of America (GAAS). Management is responsible for the preparation and fair presentation of the financial statements, while the auditor's responsibility is to express an opinion on these statements based on the audit.

However, the excerpts from the 2025 FDD do not specify whether City Publications provides pro forma financial statements in Item 21. Pro forma financial statements would provide hypothetical examples of what a franchisee could expect to earn. As the FDD excerpts do not mention Item 21 or pro forma financial statements, a prospective franchisee should directly ask City Publications whether they provide any pro forma financial statements or earnings projections. This information is crucial for making an informed investment decision.