What was the depreciation amount for C12 Group in 2022?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation is provided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using straight line, 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. Accumulated amortization totaled $47,981 at December 31, 2024 and $35,986 at December 31, 2023. As a result of the sale of C12 Atlanta in 2023, the Company wrote off $80,862 in goodwill related to that subsidiary.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group's website and applications had accumulated amortization of $152,530 as of December 31, 2022. Additionally, the accumulated amortization for goodwill was $23,990 as of the same date.
For a prospective franchisee, this indicates the extent to which C12 Group has depreciated its capitalized website and application development costs, as well as the amortization of goodwill. Goodwill represents the cost of assets acquired in excess of fair value, and it is amortized over a 10-year period. The website and applications are amortized using the straight-line method over a five-year life.
These figures are important for understanding C12 Group's asset valuation and expense recognition policies. A potential franchisee may want to further investigate the specific assets included in website and application development, as well as the details of the acquisitions that resulted in goodwill, to fully understand the company's financial reporting practices.