What is the expected annual amortization expense for C12 Group's goodwill?
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. Accumulate
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, goodwill, which represents the cost of assets acquired in excess of fair value, is amortized over a 10-year period. The amortization expense is expected to be $11,995 annually through 2031.
For a prospective C12 Group franchisee, this means that C12 Group recognizes a consistent expense each year related to the amortization of goodwill. This accounting practice reflects the gradual reduction in the value of intangible assets (goodwill) over their useful life, which in this case is 10 years.
It's important to note that accumulated amortization totaled $47,981 as of December 31, 2024, and $35,986 as of December 31, 2023. Additionally, the company wrote off $80,862 in goodwill related to the sale of C12 Atlanta in 2023, indicating that significant events can impact the overall goodwill balance and amortization schedule.