What happens to inter-company account balances and transactions within the consolidated financial statements of the C12 Group?

According to the 2025 FDD, the consolidated financial statements of C12 Group, LLC include the accounts of The C12 Group, LLC and C12 Atlanta, LLC. To provide a clear and accurate financial picture, all significant inter-company account balances and transactions between these entities are eliminated in the consolidated financial statements. This means that any financial transactions, such as payments, loans, or services, between C12 Group and C12 Atlanta are removed from the combined financial statements.

For a prospective franchisee, this consolidation and elimination of inter-company transactions is important because it provides a more transparent view of the overall financial health and performance of C12 Group. By removing these internal transactions, the consolidated statements reflect the true financial activity of the company with external parties. This helps potential franchisees better assess the financial stability and profitability of C12 Group as a whole.

It's worth noting that C12 Atlanta, LLC was sold to a third party effective January 31, 2023. Therefore, future consolidated financial statements may not include C12 Atlanta, LLC, and the inter-company eliminations would no longer be relevant for that specific entity. The focus would then shift to any other subsidiaries or entities that are part of the consolidated group.