What was the total Due From Affiliates for City Publications as of December 31, 2021?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
Debt expense | 312 | - | 26,102 | | | Depreciation expense | 3,000 | 3,000 | 3,000 | | | TOTAL OPERATING EXPENSES | 1,140,130 | 1,172,585 | 1,153,845 | | | OPERATING INCOME | 273,141 | 99,917 | (13,378) | | | OTHER (EXPENSE) | | | | | | Interest expense | (9,194) | (414) | (460) | | | NET INCOME | $ 263,947 | $ 99,503 | $ (13,838) | |
CITY PUBLICATIONS FRANCHISE GROUP, INC. CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' (DEFICIT) FOR THE YEARS ENDED DECEMBER 31, 2024, 2023 AND 2022
| Common Stock | Additional Paid-In Capital | Due From Affiliates | Retained Earnings | Total Shareholders' (Deficit) | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| BALANCE, DECEMBER 31, 2021 | $ 1,000 | $ | 17,000 | $ (1,770,163) | $ 1,715,261 | $ (36,902) | |||||
| Advances from (to) affiliates | (11,790) | (11,790) | |||||||||
| Capital (distributions) | (72,470) | (72,470) | |||||||||
| Net (loss) | (13,838) | (13,838) | |||||||||
| BALANCES, DECEMBER 31, 2022 | 1,000 | 17,000 | (1,781,953) | 1,628,953 | (135,000) | ||||||
| Advances from (to) affiliates | - | - | (67,140) | - | (67,140) | ||||||
| Capital additions | - | - | - | 17,027 |
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the consolidated statement of changes in shareholders' deficit includes a line item for 'Due From Affiliates' as of December 31, 2021. However, the actual value is not explicitly provided in the table. Instead, the table shows the components of the shareholders' deficit, including common stock, additional paid-in capital, advances from/to affiliates, capital distributions, and net loss.
While the table does not directly state the 'Due From Affiliates' amount for December 31, 2021, it does show the impact of 'Advances from (to) affiliates' on the overall shareholders' deficit. For the period ending December 31, 2021, 'Advances from (to) affiliates' is listed as $1,715,261. This suggests that affiliates owed City Publications this amount as of that date.
It is important to note that 'Advances from (to) affiliates' may not represent the entire 'Due From Affiliates' balance. There could be other components contributing to the total amount. A prospective franchisee should request clarification from City Publications regarding the specific breakdown of the 'Due From Affiliates' balance as of December 31, 2021, to gain a comprehensive understanding of the company's financial position and related party transactions.
Understanding the financial relationships between City Publications and its affiliates is crucial for potential franchisees. It provides insight into the flow of funds within the organization and the financial stability of the company. Therefore, further investigation into the 'Due From Affiliates' balance is recommended.