What was the total amount of royalty fees that City Publications collected in 2023?
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 total royalty fees collected by City Publications in 2023 amounted to $236,040. This figure is part of the company's revenue, which also includes franchise fees, other revenues, and management fees. The royalty fees represent a portion of the income that City Publications receives from its franchisees for the ongoing use of its brand name, systems, and support.
For a prospective franchisee, this indicates the scale of the royalty payments made by the existing franchise network to City Publications. It is important to note that royalty fees are a recurring expense for franchisees, typically calculated as a percentage of gross sales. Understanding the total royalty fees collected by the franchisor can provide insight into the overall financial health and revenue streams of the franchise system.
Reviewing the trend of royalty fees over the three years presented (2022-2024) shows some fluctuation. While the royalty fees for 2023 were $236,040, they decreased to $165,720 in 2024. Prospective franchisees should inquire about the reasons for these fluctuations and how they might impact the financial performance of individual franchise units. This information, combined with understanding the services and support provided in exchange for the royalty fees, can help potential franchisees assess the value and sustainability of the franchise opportunity.