For C12 Group, what is management required to evaluate when preparing financial statements?

According to the 2025 C12 Group Franchise Disclosure Document, when preparing financial statements, the company's management must evaluate whether any conditions or events, when considered together, might raise significant concerns about C12 Group's ability to continue operating as a going concern within one year from when the financial statements are issued. This evaluation is a standard accounting practice.

This requirement ensures that C12 Group's financial statements provide a transparent view of the company's financial health and stability. By assessing the company's ability to continue as a going concern, management provides stakeholders, including potential franchisees, with critical information for making informed decisions. This assessment considers various factors that could impact the company's financial viability, such as market conditions, operational challenges, and financial risks.

For a prospective C12 Group franchisee, this evaluation provides a level of assurance that the franchisor is diligently monitoring its financial stability. It suggests that C12 Group is adhering to standard accounting practices and is transparent about its financial condition. Reviewing the auditor's report and the financial statements, including any notes regarding going concern evaluations, is an important part of the due diligence process for anyone considering investing in a C12 Group franchise.