How much did C12 Group spend on contract labor 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 company's expenses for contract labor in 2022 totaled $694,667. This is an increase from 2021, where contract labor expenses were $499,758.
For a prospective franchisee, this figure provides insight into the operational costs incurred by C12 Group. Contract labor can include various services, and understanding this expense can help a franchisee assess the financial health and operational strategies of the franchisor. It is important to note that this expense is part of the overall operating expenses, which totaled $5,759,133 in 2022.
Reviewing these figures in the context of C12 Group's total revenues, which were $6,439,290 in 2022, can give potential franchisees a clearer picture of how the company manages its finances. Comparing these expenses and revenues with previous years can also reveal trends and potential areas of growth or concern. Franchisees should consider how these expenses might impact the services and support they receive from C12 Group.