What was the net goodwill for the C12 Group in 2022?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
rovided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using straight line and accelerated methods, generally with lives ranging from three to seven years.
Goodwill: Goodwill represents the cost of assets acquired in excess of fair value. Goodwill is amortized over a 10 year period. Amortization is expected to be $11,995 annually through 2031. Accu
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group's goodwill represents the cost of assets acquired exceeding their fair value. This goodwill is amortized over a 10-year period. The annual amortization expense is expected to be $11,995 through 2031. As of December 31, 2022, the accumulated amortization totaled $23,990. In 2023, C12 Group wrote off $80,862 in goodwill due to the sale of C12 Atlanta.
For a prospective franchisee, understanding goodwill and its amortization is crucial because it affects the company's financial statements and overall valuation. The consistent amortization expense provides a predictable reduction in the goodwill asset each year. The write-off of goodwill related to C12 Atlanta in 2023 indicates a significant event that impacted the company's assets and financial reporting.
It's important to note that goodwill is an intangible asset, and its value is subject to management's assessment and accounting practices. Franchisees should be aware of how goodwill is treated in the financial statements, as it can influence the perceived financial health and stability of C12 Group. Reviewing the company's audited financial statements and understanding the notes related to goodwill can provide valuable insights for potential investors.