What was the net income for City Publications during the year ended December 31, 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 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, 2023, was $99,503. This figure represents the company's profit after deducting all expenses from its total revenues. A prospective franchisee should consider this when evaluating the financial health and profitability of City Publications.
Specifically, the FDD provides a breakdown of revenues and expenses. For 2023, City Publications reported total revenues of $1,272,502, which included franchise fees, royalty fees, other revenues, and management fees. Operating expenses totaled $1,172,585, encompassing compensation, administrative costs, franchise-related costs, advertising, professional fees, and depreciation. The operating income, before considering interest expense, was $99,917. After accounting for interest expenses of $414, the net income was $99,503.
It's important for potential franchisees to review these figures in the context of City Publications' overall financial performance and trends over the three years presented (2022-2024). Comparing revenue streams, expense categories, and net income across these years can provide insights into the stability and growth potential of the franchise. Furthermore, understanding the components of revenue and expenses can help franchisees assess the factors that contribute to profitability and identify areas for potential improvement or cost management within their own franchise operations.
Franchisees should also investigate how these financial results compare to other franchises in the advertising and direct mail industry. While a net income of $99,503 might seem positive, its relative strength depends on the size and scope of City Publications' operations and the benchmarks for profitability within its sector. A thorough due diligence process, including consultation with financial advisors and existing franchisees, is essential to making an informed investment decision.