How are C12 Group's income taxes handled?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Independent Auditor's Report
To the Board of Directors of The C12 Group, LLC
Opinion
We have audited the accompanying financial statements of The C12 Group, LLC (a Texas limited liability company) and subsidiary which comprise the consolidated balance sheets as of December 31, 2022 and 2021, and the related consolidated statements of operations and members' capital, and cash flows for the years then ended, and the related notes to the consolidated financial statements.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of The C12 Group, LLC and subsidiary as of December 31, 2022 and 2021, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinion
We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of The C12 Group, LLC and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
Based on the 2025 FDD, the provided excerpts do not contain specific details on how C12 Group handles its income taxes. However, the FDD does include independent auditor's reports and notes to the consolidated financial statements, indicating that C12 Group's financial statements are audited in accordance with generally accepted accounting principles. These audits are conducted to ensure the fair presentation of the company's financial position, results of operations, and cash flows. The auditor's report includes opinions on the financial statements and describes the responsibilities of both the management and the auditor in preparing and auditing these statements.
While the FDD confirms that C12 Group's financial statements are audited, it does not elaborate on specific tax-related accounting policies or procedures. The notes to the financial statements provide some insight into the company's accounting policies, such as the basis of consolidation, revenue recognition, and cash and cash equivalents, but these do not directly address income tax treatment. The absence of specific information regarding income taxes means that prospective franchisees need to seek additional clarification from C12 Group regarding this aspect of their financial operations.
Therefore, a prospective franchisee should ask C12 Group for detailed information on how income taxes are handled, including the types of taxes the company pays (e.g., federal, state, local), the accounting methods used for tax purposes, and any tax planning strategies employed. Understanding these details is crucial for assessing the overall financial health and stability of C12 Group and for making informed decisions about investing in a franchise.