What is the amortization period for C12 Group's website and application costs?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
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 company capitalizes costs associated with the development and implementation of their website and application. These costs are considered intangible assets and are amortized using the straight-line method over a five-year life.
For a prospective C12 Group franchisee, this means that the costs C12 Group incurs to develop and maintain their website and application are spread out as expenses over a five-year period for accounting purposes. This is a standard accounting practice that reflects the useful life of these digital assets.
The accumulated amortization for these assets totaled $308,762 as of December 31, 2024, and $185,725 as of December 31, 2023. This shows the total amount of the website and application costs that have been expensed up to those dates. The difference between these two figures represents the amortization expense recognized in 2024.