What was the Retained Earnings balance for City Publications as of December 31, 2021?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 related costs | 244,917 | 212,220 | 150,427 | |
| Advertising and promotion | 29,375 | 32,623 | 15,369 | |
| Professional fees | 26,418 | 41,310 | (4,174) | |
| Bad Debt expense | 312 | - | 26,102 | |
| Depreciation expense | 3,000 | 3,000 | 3,000 | |
| TOTAL OPERATING EXPENSES | 1,140,130 | 1,172,585 | 1,153,845 | |
| OPERATING INCOME | 273,141 | 99,917 | (13,378) | |
| OTHER (EXPENSE) | ||||
| Interest expense | (9,194) | (414) | (460) | |
| NET INCOME | $ 263,947 | $ 99,503 | $ (13,838) |
**CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) FOR THE YEARS ENDED DECEMBER 31, 202
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the Retained Earnings balance as of December 31, 2021, was $1,715,261. This figure is part of the Consolidated Statements of Changes in Shareholders' (Deficit) for the years ended December 31, 2024, 2023, and 2022. The statement provides a detailed overview of the equity-related accounts of City Publications over these three years.
Retained earnings represent the accumulated profits of City Publications that have not been distributed as dividends to shareholders. A positive retained earnings balance suggests that the company has been profitable over time. However, it's important to note that this value can be affected by various accounting practices and business decisions.
Prospective franchisees should consider the trend of retained earnings over multiple years, as well as other financial metrics, to gain a comprehensive understanding of City Publications' financial health. It is also important to understand how 'Due from Affiliates' impacts the overall shareholder's deficit, as this amount is subtracted from the retained earnings.