What was the total amount spent by City Publications on general and administrative expenses in 2023?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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 OPERATIONS
| 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 relat |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the company's general and administrative expenses for the year 2023 totaled $328,368. This figure is part of the broader category of operating expenses, which also includes items like compensation, franchise-related costs, advertising, professional fees, and depreciation. Understanding these expenses is crucial for potential franchisees as it provides insight into the financial management and operational costs of City Publications.
General and administrative expenses typically cover a range of costs associated with running the business, such as office supplies, utilities, administrative salaries, and other overhead. For a prospective franchisee, this number indicates the level of resources City Publications invests in its corporate operations and support functions. A higher figure might suggest a more robust support system, while a lower figure could indicate a leaner operation.
It's also useful to compare this expense to other revenue and expense categories. For example, in 2023, City Publications had total revenues of $1,272,502 and total operating expenses of $1,172,585. This context helps a franchisee assess how efficiently City Publications manages its resources and whether the administrative costs are proportionate to its overall financial performance. Reviewing these figures over several years, as presented in the table, can reveal trends and potential areas of concern or strength.
Prospective franchisees should consider these expenses in conjunction with other financial metrics to gain a comprehensive understanding of City Publications' financial health. It is also advisable to inquire about the specific items included in general and administrative expenses to better assess their impact on the franchisee's potential profitability.