What was the members' capital at the beginning of the year for C12 Group in 2022?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
embers' Capital | 1,843,880 | 1,312,531 | | Total Liabilities and Members' Capital | $ 3,534,314 | $ 1,840,832 |
Consolidated Statements of Operations and Members' Capital Years Ended December 31, 2022 and 2021
| 2022 | 2021 | |
|---|---|---|
| Revenues: | ||
| Franchise Fees | $ 5,362,125 | $ 4,232,334 |
| Dues - C12 Atlanta | 429,500 | 341,900 |
| International License Fees | 115,917 | 76,750 |
| New Member Registration Fees | 396,775 | 291,525 |
| Merchandise and Promotion | 134,973 | 158,393 |
| Total Revenues | 6,439,290 | 5,100,902 |
| Operating Expenses: | ||
| Curriculum and Kits | 489,001 | 332,582 |
| Contract Labor | 694,667 | 499,758 |
| Bad Debt Expense | 3,000 | - |
| Merchandise | 103,167 | 215,886 |
| Content Production | 94,610 | 34,058 |
| Advertising | 65,169 | 134,466 |
| Service Fees | 73,375 | 58,555 |
| Co-op Marketing | 42,879 | 64,452 |
| Travel and Entertainment | 194,270 | 83,225 |
| Franchise Marketing and Administration | 11,708 | 10,763 |
| New Chair Training | 98,722 | 70,974 |
| Technology | 124,927 | 74,756 |
| Chair Development and Training | 141,774 | 143,041 |
| Miscellaneous Projects | 15,038 | 13 |
| Administration | - | - |
| Chair Services | 90,966 | 103,260 |
| Office and Equipment | 215,986 | 221,670 |
| Staff Development and Training | 97,615 | |
| Board of Directors Expense | 134,206 12,141 | 10,377 |
| Professional Fees and Services | 59,883 | 48,140 |
| Merchant Fees and Bank Charges | 15,828 | 18,063 |
| Salaries and Benefits | 2,900,324 | 2,459,216 |
| Depreciation and Amortization | 101,472 | 57,769 |
| Charitable Contributions | 76,020 | 80,000 |
| Total Operating Expenses | 5,759,133 | 4,818,639 |
| Net Income From Operations | 680,157 | 282,263 |
| Other Income (Expenses) | ||
| Other Income | 7,364 | 763,086 |
| Other Expense | (25,214) | (731,936) |
| Total Other Income (Expenses) | (17,850) | 31,150 |
| Net Income Before State Income Taxes | 662,307 | 313,413 |
| State Income Taxes | 21,440 | 17,113 |
| Net Income |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the members' capital at the beginning of the year 2022 was $1,312,531. This figure represents the net worth of the members' equity in the company at the start of the fiscal year, before any income, contributions, or distributions were accounted for during that year.
For a prospective franchisee, understanding the members' capital at the beginning of the year provides insight into the financial stability and overall financial position of C12 Group. It serves as a baseline for assessing the company's financial performance throughout the year, as reflected in subsequent changes to the members' capital.
The FDD also shows that the members' capital at the end of the year 2022 was $1,843,880. This increase from the beginning of the year indicates that C12 Group experienced a net increase in its members' equity during 2022, which could be due to profitable operations or additional capital contributions. Distributions during the year totaled $109,518, which reduced the overall capital growth.