How does C12 Group amortize goodwill?

According to C12 Group's 2025 Franchise Disclosure Document, goodwill, which represents the cost of assets acquired in excess of fair value, is amortized over a 10-year period. The amortization is expected to be $11,995 annually through 2031. Accumulated amortization totaled $47,981 as of December 31, 2024, and $35,986 as of December 31, 2023.

For a prospective C12 Group franchisee, this means that C12 Group recognizes the reduction in value of its goodwill asset over a set period, which impacts its financial statements. The consistent annual amortization expense of $11,995 provides a predictable reduction in the goodwill asset's value each year. This systematic approach to amortization helps to accurately reflect the declining value of the intangible asset on the company's balance sheet.

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 lead to immediate adjustments in the goodwill balance. Franchisees should be aware that such write-offs can affect the company's overall financial health and should consider these factors when evaluating the franchisor's financial stability.

It is important for potential franchisees to understand how C12 Group manages and accounts for its intangible assets, as this can provide insights into the company's financial management practices and overall financial condition. Reviewing the accumulated amortization and any significant write-offs can help franchisees assess the franchisor's financial stability and make informed decisions.