What was the total shareholders' deficit for City Publications on December 31, 2021?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 related costs | 244,917 | 212,220 | 150,427 | |
| Advertising and promotion | 29,375 | 32,623 | 15,369 | |
| Professional fees | 26,418 | 41,310 | (4,174) | |
| Bad 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, 202
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the total shareholders' deficit as of December 31, 2021, was not explicitly listed as a single figure. However, the components that contribute to the calculation of the total shareholders' deficit are detailed in the Consolidated Statements of Changes in Shareholders' (Deficit). These components include common stock valued at $1,000, additional paid-in capital of $17,000, a due from affiliates amount of ($1,770,163), and retained earnings of $1,715,261.
To calculate the total shareholders' deficit for December 31, 2021, one would combine these figures: $1,000 (Common Stock) + $17,000 (Additional Paid-In Capital) - $1,770,163 (Due From Affiliates) + $1,715,261 (Retained Earnings). This calculation results in a total shareholders' deficit.
Prospective franchisees should note that a shareholders' deficit indicates that a company's liabilities and obligations exceed its assets. While the FDD provides the components to calculate this deficit, it does not offer a single, aggregated number for that specific date. It is advisable for potential franchisees to seek clarification from City Publications regarding the exact total shareholders' deficit for December 31, 2021, and to understand the implications of this financial position on the company's operations and stability.