What was the franchise administration expense for C12 Group in 2024?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ess Imputed Interest | - | 2,690 | | Present value of lease liability | $ | 56,942 |
NOTE E - OTHER OPERATING EXPENSES
Other operating expenses include the following for the years ended December 31:
| _ | 2024 | 2023 | |
|---|---|---|---|
| Franchise administration | $ | 2,418 | $ 9,418 |
| Board |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the franchise administration expense for 2024 was $2,418. This figure represents the direct costs C12 Group incurred for administering its franchise system during that year. Franchise administration is a standard operating expense for franchisors. These costs can include salaries for franchise support staff, legal and accounting fees related to franchise compliance, and other resources used to manage the franchise network.
For a prospective C12 Group franchisee, understanding this expense can provide insight into how C12 Group manages its resources and supports its franchisees. While franchisees do not directly pay this expense, it is covered by the franchise fees and royalties paid to C12 Group. A lower franchise administration expense might suggest efficient management, while a higher expense could indicate more extensive support services or potential inefficiencies.
It's also useful to compare this figure with the previous year's expense. In 2023, the franchise administration expense was $9,418. The decrease from 2023 to 2024 could be due to various factors, such as changes in administrative practices, cost-cutting measures, or a shift in resource allocation within C12 Group. A prospective franchisee may want to inquire about the reasons for this change to better understand the financial management of the franchise system.