What was the amount of members' capital at the beginning of 2021 for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
embers' Capital | 1,843,880 | 1,312,531 | | Total Liabilities and Members' Capital | $ 3,534,314 | $ 1,840,832 |
Consolidated Statements of Operations and Members' Capital Years Ended December 31, 2022 and 2021
| 2022 | 2021 | |
|---|---|---|
| Revenues: | ||
| Franchise Fees | $ 5,362,125 | $ 4,232,334 |
| Dues - C12 Atlanta | 429,500 | 341,900 |
| International License Fees | 115,917 | 76,750 |
| New Member Registration Fees | 396,775 | 291,525 |
| Merchandise and Promotion | 134,973 | 158,393 |
| Total Revenues | 6,439,290 | 5,100,902 |
| Operating Expenses: | ||
| Curriculum and Kits | 489,001 | 332,582 |
| Contract Labor | 694,667 | 499,758 |
| Bad Debt Expense | 3,000 | - |
| Merchandise | 103,167 | 215,886 |
| Content Production | 94,610 | 34,058 |
| Advertising | 65,169 | 134,466 |
| Service Fees | 73,375 | 58,555 |
| Co-op Marketing | 42,879 | 64,452 |
| Travel and Entertainment | 194,270 | 83,225 |
| Franchise Marketing and Administration | 11,708 | 10,763 |
| New Chair Training | 98,722 | 70,974 |
| Technology | 124,927 | 74,756 |
| Chair Development and Training | 141,774 | 143,041 |
| Miscellaneous Projects | 15,038 | 13 |
| Administration | - | - |
| Chair Services | 90,966 | 103,260 |
| Office and Equipment | 215,986 | 221,670 |
| Staff Development and Training | 97,615 | |
| Board of Directors Expense | 134,206 12,141 | 10,377 |
| Professional Fees and Services | 59,883 | 48,140 |
| Merchant Fees and Bank Charges | 15,828 | 18,063 |
| Salaries and Benefits | 2,900,324 | 2,459,216 |
| Depreciation and Amortization | 101,472 | 57,769 |
| Charitable Contributions | 76,020 | 80,000 |
| Total Operating Expenses | 5,759,133 | 4,818,639 |
| Net Income From Operations | 680,157 | 282,263 |
| Other Income (Expenses) | ||
| Other Income | 7,364 | 763,086 |
| Other Expense | (25,214) | (731,936) |
| Total Other Income (Expenses) | (17,850) | 31,150 |
| Net Income Before State Income Taxes | 662,307 | 313,413 |
| State Income Taxes | 21,440 | 17,113 |
| Net Income |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the members' capital at the beginning of 2021 was $1,285,910. This figure represents the cumulative investment and retained earnings of the members in C12 Group at the start of that fiscal year. It serves as a baseline for assessing the company's financial performance and equity growth throughout 2021.
For a prospective franchisee, understanding the members' capital is crucial as it reflects the financial stability and overall health of C12 Group. A higher members' capital typically indicates a stronger financial foundation, which can be reassuring for franchisees considering investing in the franchise. It also provides insight into how effectively the company manages its finances and generates returns for its members.
It is important to note that this figure is just one aspect of the overall financial picture. Franchisees should also consider other financial metrics, such as revenue, expenses, and net income, to gain a comprehensive understanding of C12 Group's financial performance. Additionally, comparing the members' capital over several years can reveal trends and patterns that may be relevant to a franchisee's investment decision.
Reviewing the complete financial statements and seeking professional financial advice are recommended steps for any potential C12 Group franchisee to fully assess the financial implications of investing in the franchise.