How did the royalty fees for City Publications change from 2023 to 2024?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 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 OPERATION
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the royalty fees experienced a decrease from 2023 to 2024. In 2023, City Publications collected $236,040 in royalty fees. However, in 2024, the royalty fees decreased to $165,720. This represents a decrease of $70,320 in royalty fees collected by City Publications from one year to the next.
This change in royalty fees could be due to a variety of factors, such as a decrease in sales among franchisees, a change in the royalty fee structure, or an increase in the number of franchisees who are not yet required to pay royalty fees. It is important to note that while royalty fees decreased, City Publications' franchise fees increased from $305,073 in 2023 to $624,453 in 2024. This increase in franchise fees helped offset the decrease in royalty fees, as the total revenues for City Publications increased from $1,272,502 in 2023 to $1,413,271 in 2024.
A prospective franchisee should investigate the reasons behind the decrease in royalty fees to understand the potential impact on their investment. Understanding the factors that influence royalty fees can help a franchisee better predict their potential earnings and assess the overall financial health of the City Publications franchise system. It would be prudent to ask the franchisor for more details on what caused this change.