How does C12 Group depreciate its property and equipment?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation is computed for financial statement purposes on a straight-line basis over the estimated useful lives as follow:
Website and Computer Equipment 5 years Office Furniture and Equipment 5 - 7 years Leasehold Improvements 3 years
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the company calculates depreciation for financial statement purposes using the straight-line method. The estimated useful lives for different asset categories are as follows:
- Website and Computer Equipment: 5 years
- Office Furniture and Equipment: 5-7 years
- Leasehold Improvements: 3 years
This means that the cost of these assets will be evenly expensed over their respective useful lives. For example, if C12 Group purchases a computer for $5,000, $1,000 would be recognized as depreciation expense each year for five years. This information is relevant to potential franchisees as it provides insight into how C12 Group manages its assets and reports its financial performance.