Are there any notes to the financial statements for City Publications?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
The accompanying notes are an integral part of these financial statements.
NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
CITY PUBLICATIONS FRANCHISE GROUP, INC. ("Company") was formed on December 31, 2002, in the State of Georgia as a corporation. The Company grants franchises for the operation of a business which provides high quality direct mail advertising to a target market of affluent homeowners.
Reporting Entity
The Company's financial statements include the combined results of the Company and City Publications Services, Inc. ("CPS") a Georgia corporation formed on March 29, 2010. The Companies share common ownership. CPS provides marketing, design, and mailing list services to the Company's franchisees and management services to the Company's affiliates. All intercompany balances have been eliminated.
A summary of significant accounting policies follows:
Use of Estimates
Preparation of the Company's financial statements in accordance with United States generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of any contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. The Company had no cash equivalents as of December 31, 2024, and 2023.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 38)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the financial statements have accompanying notes. The notes are an integral part of these financial statements. Note 1 specifically addresses the nature of the business and summarizes significant accounting policies.
Note 1 further describes that City Publications Franchise Group, Inc. was formed on December 31, 2002, in the State of Georgia as a corporation, and grants franchises for direct mail advertising to affluent homeowners. The financial statements include the combined results of the Company and City Publications Services, Inc. (CPS), a Georgia corporation formed on March 29, 2010, which provides marketing, design, mailing list services to franchisees, and management services to the company's affiliates. All intercompany balances have been eliminated.
Additionally, the notes cover the use of estimates in preparing the financial statements, stating that management must make estimates and assumptions that affect the reported amounts of assets and liabilities. The notes also address cash and cash equivalents, defining them as highly liquid investments with a maturity of three months or less. The company had no cash equivalents as of December 31, 2024, and 2023.
Prospective franchisees should carefully review these notes to understand the accounting practices and assumptions used in preparing City Publications' financial statements. Understanding these policies can help franchisees better assess the financial health and stability of the franchisor.