How does C12 Group amortize its 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 its website and applications used by its members and Chairs. These costs include additional functionalities that have been added and capitalized over time.
C12 Group amortizes these intangible assets using the straight-line method over a five-year life. This means that the cost of the website and applications is evenly distributed as an expense over five years.
For prospective franchisees, this accounting practice indicates that C12 Group invests in and develops its technological resources, which are then systematically accounted for over their useful life. Reviewing the accumulated amortization, which totaled $308,762 as of December 31, 2024, and $185,725 as of December 31, 2023, can provide insight into the scale and pace of these investments.