What was the accumulated amortization of goodwill for C12 Group at December 31, 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
rovided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using straight line and accelerated methods, generally with lives ranging from three to seven years.
Goodwill: Goodwill represents the cost of assets acquired in excess of fair value. Goodwill is amortized over a 10 year period. Amortization is expected to be $11,995 annually through 2031. Accu
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the accumulated amortization of goodwill totaled $35,986 as of December 31, 2023. Goodwill, representing the cost of assets acquired exceeding fair value, is amortized over a 10-year period. The company anticipates annual amortization expenses of $11,995 through 2031.
It's important to note that in 2023, C12 Group wrote off $80,862 in goodwill due to the sale of C12 Atlanta. This write-off significantly impacts the overall goodwill amortization and should be considered when evaluating the company's financial performance. The accumulated amortization reflects the reduction in the carrying value of goodwill over time, which is a standard accounting practice.
Prospective franchisees should understand how goodwill is accounted for, as it can affect the company's reported assets and profitability. The consistent amortization schedule provides a predictable expense, but significant events like the sale of C12 Atlanta can lead to substantial adjustments. Reviewing the financial statements and understanding the notes related to goodwill is crucial for assessing the financial health and stability of C12 Group.