What was the net income for City Publications during the year ended December 31, 2024?
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, 2024, was $263,947. This figure represents the company's profit after all revenues and expenses were accounted for during that specific period. Reviewing City Publications' financial performance over several years can provide insights into the stability and potential growth of the franchise system.
For a prospective franchisee, understanding the net income of the franchisor is crucial as it reflects the financial health and profitability of the company. A positive and growing net income can indicate a well-managed and successful franchise system, which can be an attractive factor for potential investors. Conversely, a declining or negative net income may raise concerns about the franchisor's ability to support its franchisees and maintain the brand's reputation.
It's also beneficial to compare City Publications' net income with those of other franchise systems in the advertising and direct mail industry to benchmark its financial performance. Additionally, prospective franchisees should analyze the components of revenue and expenses to identify key drivers of profitability and potential areas of risk or opportunity. Consulting with a financial advisor can provide further assistance in interpreting these financial statements and assessing the overall investment potential of a City Publications franchise.