What was the amount of accumulated depreciation for C12 Group in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
rovided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using straight line and accelerated methods, 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 $35,986 at December 31, 2023 and $23,990 at December 31, 2022. 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 of its members. Additional functionalities have been added an
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the company's assets include goodwill and its website and applications. Goodwill is amortized over 10 years, while the website and applications are amortized using the straight-line method over five years. Amortization reflects the reduction in the value of these assets over time.
As of December 31, 2023, the accumulated amortization for goodwill totaled $35,986. Additionally, the accumulated amortization for the website and applications totaled $185,725. These figures represent the total amortization expense recognized for these assets up to that date.
For a prospective C12 Group franchisee, understanding these amortization schedules is important for assessing the company's financial health and how it manages its assets. It also provides insight into how C12 Group accounts for its intangible assets, which can be a significant part of its overall value. Note that these figures do not represent depreciation of physical assets, but rather the amortization of intangible assets like goodwill and software.