What was the net income 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 net income for the year ended December 31, 2022, was a loss of $13,838. This figure is derived from the consolidated statements of changes in shareholders' deficit, which outlines the financial performance of City Publications over the 2022-2024 period. Note that this is a consolidated figure, so it represents the overall financial performance of City Publications, including any affiliated entities.
For a prospective franchisee, this information is crucial for understanding the financial stability and performance trends of City Publications. A loss in 2022, followed by profits in 2023 and 2024, suggests a potential turnaround or recovery phase for the company. Reviewing these trends helps potential franchisees assess the risks and opportunities associated with investing in a City Publications franchise.
It is important to consider the factors that contributed to the net loss in 2022. While the FDD provides the net income figure, it does not detail the specific reasons for the loss. Further investigation into the company's financial statements and discussions with current franchisees may provide additional insights into the circumstances surrounding the 2022 performance. Understanding these factors can help a franchisee make a more informed decision about investing in a City Publications franchise.