When did the C12 Group enter into a Letter of Intent (LOI) to sell C12 Atlanta, LLC?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
interest (208) Present value of lease liabilities $ 296,134
10. Subsequent Events
Subsequent events have been evaluated through March 15, 2023, which is the date the financial statements were available to be issued.
Sell of C12 Atlanta
Prior to December 31, 2022, The Company entered into a Letter of Intent (LOI) to sell C12 Atlanta, LLC. The sell was executed and closed on January 31, 2023.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group entered into a Letter of Intent (LOI) to sell C12 Atlanta, LLC prior to December 31, 2022. The sale was executed and closed on January 31, 2023. C12 Group had acquired 100% of C12 Atlanta LLC in March 2017, at which point C12 Atlanta was a franchisee of C12 Group and operated as a wholly owned subsidiary.
This indicates that C12 Group both acquired and later sold one of its franchisees. For a prospective franchisee, this could signal that C12 Group is willing to buy back franchises or make strategic decisions regarding company-owned or franchised locations.
It's important to note that the sale was to a third party, meaning an entity outside of C12 Group. This type of transaction could be influenced by various factors, such as market conditions, strategic realignment, or the financial performance of C12 Atlanta, LLC. A potential franchisee might want to inquire about the reasons behind the sale and whether C12 Group anticipates similar transactions in the future.