How does C12 Group define goodwill?
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. Accu
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, goodwill represents the cost of assets acquired in excess of their fair value. Goodwill for C12 Group is amortized over a 10-year period. The company anticipates annual amortization expenses of $11,995 through 2031.
As of December 31, 2023, the accumulated amortization of goodwill totaled $35,986, compared to $23,990 on December 31, 2022. The sale of C12 Atlanta in 2023 resulted in a write-off of $80,862 in goodwill related to that subsidiary.
For a prospective C12 Group franchisee, understanding how goodwill is accounted for is important for assessing the financial health and stability of the company. The amortization schedule and the impact of the C12 Atlanta sale provide insights into how C12 Group manages its assets and reports its financial performance. This information can be useful in evaluating the overall investment opportunity and potential risks associated with the franchise.