What was the accumulated amortization of goodwill for C12 Group at December 31, 2024?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation is provided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using straight line, 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. Accumulated amortization totaled $47,981 at December 31, 2024 and $35,986 at December 31, 2023. As a result of the sale of C12 Atlanta in 2023, the Company wrote off $80,862 in goodwill related to that subsidiary.
Website and Applications: The Company has capitalized costs for the development and implementation of their website and application for the use by Chairs and members. Additional functionalities have been added and
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 $47,981 as of December 31, 2024. Goodwill, representing the cost of acquired assets exceeding fair value, is amortized over a 10-year period. The annual amortization expense is expected to be $11,995 through 2031.
For a prospective C12 Group franchisee, understanding goodwill amortization is crucial for assessing the financial health of the franchise system. Accumulated amortization reduces the carrying value of goodwill on the balance sheet, reflecting the expense recognized over time. The FDD also notes that accumulated amortization totaled $35,986 at December 31, 2023.
Additionally, the sale of C12 Atlanta in 2023 resulted in a write-off of $80,862 in goodwill related to that subsidiary. This indicates that significant events, such as the sale of a subsidiary, can impact the goodwill balance and related amortization. Franchisees should be aware of these factors when evaluating the financial statements provided in the FDD.
Furthermore, C12 Group also capitalizes costs related to the development and implementation of their website and applications, which are amortized using the straight-line method over a five-year life. Accumulated amortization for website and applications totaled $308,762 at December 31, 2024, and $185,725 at December 31, 2023. This highlights that C12 Group invests in and amortizes various intangible assets, impacting its financial statements.