What was the amount of unearned revenue for The C12 Group, LLC in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
capitalized. These intangible assets are amortized using the straight-line method over a five-year life. Accumulated amortization totaled $308,762 at December 31, 2024 and $185,725 at December 31, 2023.
Unearned Revenue: The Company receives prepayments for
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, The C12 Group receives prepayments for sponsorships and ticket sales to its bi-annual conference. This revenue is recognized once the revenue cycle is complete. The customer deposits totaled $914,503 at the beginning of the earliest year presented. While the exact unearned revenue for 2023 is not explicitly stated, the beginning balance provides a baseline for understanding the magnitude of these prepayments.
For a prospective C12 Group franchisee, this indicates that the company handles a significant amount of prepaid revenue related to its conferences. This unearned revenue represents a future obligation to provide services or host events for which payment has already been received. Understanding the timing and recognition of this revenue is crucial for assessing the financial health and stability of The C12 Group.
It is important to note that the FDD does not specify how much of the $914,503 was recognized as revenue during 2023 or what the ending balance of unearned revenue was at the end of 2023. A prospective franchisee should inquire about the specific amounts of unearned revenue recognized and the ending balance for 2023 to gain a clearer picture of the company's revenue recognition practices and financial performance.