How much did City Publications advance to affiliates in 2024?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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Estimated Recognition of Deferred Franchise Fees
Estimated revenues and franchise acquisition costs to be recognized in future periods related to deferred franchise fees reported as of December 31, 2024, is as follows:
| Non-refundable Franchise Fees | ||
|---|---|---|
| Year ending December 31: | ||
| 2025 | $ | 29,393 |
| 2026 | 22,613 | |
| 2027 | 17,940 | |
| 2028 | 11,880 | |
| $ | 81,826 |
NOTE 3 – RELATED PARTY TRANSACTIONS
During the year ended December 31, 2024, 2023, and 2022, the Company provided management and advertising services the Company's
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the company advanced $145,012 to support affiliate operations during the year ended December 31, 2024. This is a notable increase compared to the $67,140 advanced in 2023 and the $50,894 advanced in 2022. These advances are classified as a component of shareholders' deficit because the affiliates are under common control through common ownership.
As of December 31, 2024, the total advances due from affiliates amounted to $1,994,105, compared to $1,849,093 as of December 31, 2023. These advances do not bear interest and have no specified repayment terms. This arrangement suggests a close financial relationship between City Publications and its affiliates, with the company providing significant financial support to these related entities.
For a prospective franchisee, this related party transaction indicates that City Publications has complex financial relationships with its affiliates. While the advances themselves might not directly impact a franchisee's day-to-day operations, the franchisee should be aware of how the franchisor manages its finances and supports its related entities. Understanding the financial stability and interconnectedness of City Publications with its affiliates can provide a more comprehensive view of the franchisor's overall financial health.
It would be prudent for a potential franchisee to inquire about the nature of these affiliate relationships, the services provided by these affiliates, and how these financial transactions might affect the franchisor's ability to support its franchisees. Further due diligence into these related party transactions can help a franchisee make a more informed decision.