What accounting principles does The C12 Group conform with in the preparation of its financial statements?

According to the 2025 C12 Group FDD, the company's consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). This indicates that C12 Group adheres to a standardized set of accounting rules and guidelines when creating its financial reports. These principles ensure transparency and comparability in financial reporting.

Specifically, the independent auditor's reports included in the FDD state that the financial statements of C12 Group present fairly, in all material respects, the company's financial position, results of its operations, and cash flows in accordance with GAAP. This opinion from the auditor provides assurance that the financial statements are reliable and accurately reflect the financial status of C12 Group.

Furthermore, the FDD emphasizes management's responsibility for preparing and fairly presenting the financial statements in accordance with accounting principles generally accepted in the United States of America. Management is also responsible for the design, implementation, and maintenance of internal controls relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. This highlights the importance of both following GAAP and maintaining strong internal controls to ensure the integrity of the financial statements.

For a prospective franchisee, this means that C12 Group's financial statements are prepared using a consistent and widely recognized framework, which can provide a level of comfort and confidence when reviewing the company's financial performance. It also allows for easier comparison with other companies that follow the same accounting principles.