What was the total amount spent by City Publications on professional fees 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's 2025 Franchise Disclosure Document, the company spent $41,310 on professional fees in 2023. This figure is part of the consolidated statements of operations, which also include revenues and other operating expenses. Professional fees are a standard business expense, often covering costs such as accounting, legal, and consulting services.
For a prospective City Publications franchisee, understanding the franchisor's expenses can provide insight into the financial management and stability of the company. Seeing the specific amount allocated to professional fees helps to gauge the level of external expertise City Publications utilizes. This can be an indicator of the support and resources available to franchisees, as these fees may cover services that indirectly benefit the franchise network.
It's worth noting that professional fees can fluctuate from year to year based on the specific needs and projects undertaken by City Publications. For instance, the professional fees in 2022 were listed as ($4,174), which is significantly lower than the $41,310 spent in 2023. Reviewing these trends over multiple years can offer a more comprehensive understanding of City Publications's financial practices and priorities. Franchisees may want to inquire about the nature of these professional fees to better understand how they contribute to the overall franchise system.