What was the accumulated amortization of C12 Group's goodwill 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 acquired assets exceeding their fair value, is amortized over a 10-year period. The company anticipates annual amortization expenses of $11,995 through 2031.
It is important to note that C12 Group wrote off $80,862 in goodwill in 2023 due to the sale of C12 Atlanta. This write-off significantly impacts the overall goodwill balance and should be considered when evaluating the company's financial statements. The accumulated amortization reflects the reduction in the goodwill asset's value over time, which is a standard accounting practice.
Prospective franchisees should understand how goodwill amortization affects C12 Group's financial performance and how significant events like the sale of C12 Atlanta can impact these figures. Reviewing the financial statements and understanding the notes related to goodwill and amortization is crucial for assessing the financial health and stability of the company.