What accounting principles were used in the preparation of The C12 Group, LLC's consolidated financial statements, according to the opinion?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
sheets as of December 31, 2024 and 2023, and the related statements of operations, changes in members' equity, and cash flows for the years then ended, and the related notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The C12 Group, LLC as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the independent auditor's report states that the consolidated financial statements were prepared following accounting principles generally accepted in the United States of America. This indicates that C12 Group adheres to standard and widely recognized accounting practices for financial reporting.
For a prospective franchisee, this means that C12 Group's financial statements are prepared using a consistent and well-understood framework, making it easier to analyze and compare their financial performance with other companies. GAAP (Generally Accepted Accounting Principles) provides a level of assurance that the financial information is presented fairly and transparently.
The auditor's opinion confirms that the financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows of C12 Group. This opinion is based on audits conducted in accordance with auditing standards generally accepted in the United States of America, further reinforcing the reliability of the financial information. Franchisees can review these audited statements to gain insight into the financial health and stability of C12 Group.