What was the accumulated amortization for C12 Group's website and applications at December 31, 2024?

According to C12 Group's 2025 Franchise Disclosure Document, the accumulated amortization for the company's website and applications totaled $308,762 as of December 31, 2024. These assets, which include capitalized costs for the development and implementation of the website and application used by Chairs and members, are amortized using the straight-line method over a five-year period. Additional functionalities added to the website and application are also capitalized and amortized.

For a prospective C12 Group franchisee, understanding the amortization of these digital assets is important for assessing the company's financial health and how it manages its investments in technology. Amortization reflects the gradual expensing of the cost of these assets over their useful life, which in this case is five years. This accounting practice provides a more accurate picture of the company's profitability by matching the cost of the assets with the revenue they generate over time.

The fact that C12 Group capitalizes and amortizes its website and application costs suggests a strategic investment in its digital infrastructure. This approach is common for businesses that rely heavily on technology to deliver their services or manage their operations. The straight-line method of amortization, which evenly distributes the expense over the asset's life, is a standard and straightforward way to account for these costs.

It's worth noting the difference between amortization and depreciation. While amortization is used for intangible assets like software and websites, depreciation is used for tangible assets like equipment and buildings. Both concepts serve the same purpose: to allocate the cost of an asset over its useful life. For a potential franchisee, these figures offer insight into how C12 Group manages and accounts for its assets, which can be a useful indicator of its overall financial management practices.