Does C12 Group consider its advertising costs to be significant?

According to the 2025 FDD, C12 Group expenses advertising costs as they are incurred. This indicates that C12 Group does not treat advertising costs as a capital expenditure or a significant asset to be amortized over time. Instead, the company recognizes these costs immediately as expenses on their income statement. This accounting practice suggests that C12 Group views advertising as an ongoing operational expense rather than a significant investment with long-term benefits.

For a prospective franchisee, this means that C12 Group does not consider advertising costs to be a major, long-term investment. Instead, they are treated as regular, ongoing expenses. This approach could reflect the nature of C12 Group's business model, where consistent, but not necessarily large-scale, advertising efforts are sufficient to maintain and grow the franchise network.

This accounting policy has implications for how C12 Group manages its finances and how franchisees might approach their own advertising strategies. Franchisees should be aware that while C12 Group supports marketing efforts through a Prepaid Marketing Fund, the company expenses its own advertising costs immediately, suggesting a focus on short-term advertising impacts. Franchisees should inquire about the specific advertising strategies and support provided by C12 Group to understand how they can effectively market their franchise within the company's overall approach.