What was the total amount of current liabilities for City Publications as of December 31, 2023?

According to City Publications' 2025 Franchise Disclosure Document, the total current liabilities as of December 31, 2023, were $107,220. This figure represents the sum of accounts payable ($84,847) and non-refundable deferred franchise fees, current ($22,373).

For a prospective City Publications franchisee, understanding the franchisor's liabilities is crucial. Current liabilities are obligations due within a year, and a high level of current liabilities relative to current assets could indicate financial strain. However, in this case, the current liabilities are significantly higher than the current assets, which may be a cause for concern.

It is important to note that while the total liabilities were $141,526, the current liabilities make up a substantial portion of this amount. A potential franchisee should investigate the reasons for these liabilities and assess whether they could impact the franchisor's ability to support its franchisees. Further investigation into the nature of the accounts payable and deferred franchise fees would provide a clearer picture of City Publications' financial health.

Franchisees should compare these figures with those of other franchise systems in the advertising and direct mail industry to gauge whether City Publications' financial position is typical or presents any unusual risks. Consulting with a financial advisor is recommended to fully understand the implications of these liabilities.