What was the retained earnings amount for City Publications as of December 31, 2024?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
ntial doubt about CITY PUBLICATIONS FRANCHISE GROUP, INC.'s ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control—related matters that we identified during the audit.
Ft. Collins, Colorado April 20, 2025
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED BALANCE SHEETS
| AS OF DECEMBER 31, | |||
|---|---|---|---|
| 2024 | 2023 | ||
| ASSETS: | |||
| CURRENT ASSETS | |||
| Cash and equivalents | $ 469,911 | $ 34,370 | |
| Accounts receivable | 6,166 | 10,184 | |
| TOTAL CURRENT ASSETS | 476,077 | 44,554 | |
| NON-CURRENT ASSETS | |||
| Property and equipment | 2,179 | 3,000 | |
| Other assets | 8,362 | 8,362 | |
| TOTAL ASSETS | $ 486,618 | $ 55,916 | |
| LIABILITIES AND SHAREHOLDERS' (DEFICIT): | |||
| CURRENT LIABILITIES | |||
| Accounts payable | $ 478,790 | $ 84,847 | |
| Non-refundable deferred franchise fees, current | 29,393 | 22,373 | |
| TOTAL CURRENT LIABILITIES | 508,183 | 107,220 | |
| NON-CURRENT LIABILITIES | |||
| Non-refundable deferred franchise fees | 52,433 | 34,306 | |
| TOTAL LIABILITIES | 560,616 | 141,526 | |
| SHAREHOLDERS' (DEFICIT) | |||
| Common stock, $1 par value, 100,000 shares authorized | |||
| 1,000 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 |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the company's retained earnings as of December 31, 2024, was $1,902,107. This figure represents the accumulated profits of City Publications that have been retained in the business rather than distributed as dividends to shareholders. Retained earnings is a key indicator of a company's financial health and its ability to reinvest in future growth. A positive and growing retained earnings balance generally suggests that the company is profitable and managing its finances effectively.
For a prospective franchisee, this information is useful for assessing the financial stability and long-term viability of City Publications. A strong retained earnings balance can provide confidence that the franchisor has the resources to support its franchisees and invest in the brand's development. However, it's important to consider this figure in conjunction with other financial metrics and qualitative factors, such as the company's overall financial performance, debt levels, and growth strategy.
It is also important to note that the financial statements include the combined results of City Publications Franchise Group, Inc. and City Publications Services, Inc. (CPS). CPS provides marketing, design, mailing list services to City Publications' franchisees, and management services to the company's affiliates. All intercompany balances have been eliminated in these statements. Additionally, the financial statements also mention that advances due from affiliates as of December 31, 2024, were $1,994,105. These advances bear no interest and have no repayment terms and are classified as a component of shareholders' (deficit) as the affiliates are under common control through common ownership.
Overall, the retained earnings figure provides a snapshot of City Publications' financial position at a specific point in time. Prospective franchisees should review the complete financial statements and consult with a financial advisor to gain a comprehensive understanding of the franchisor's financial health and its implications for their investment.