What was the net value of C12 Group's goodwill in 2024?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation is provided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using straight line, 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. Accumulate
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, C12 Group's goodwill represents the excess cost of acquired assets over their fair value. This goodwill is amortized over a 10-year period, with an annual amortization expense of $11,995 expected through 2031. The accumulated amortization of goodwill totaled $47,981 as of December 31, 2024, and $35,986 as of December 31, 2023.
In 2023, C12 Group sold C12 Atlanta and wrote off $80,862 in goodwill related to that subsidiary. The FDD does not explicitly state the initial or gross value of goodwill from which the accumulated amortization is subtracted. Therefore, while we know the accumulated amortization, we cannot directly calculate the net value of C12 Group's goodwill as of December 31, 2024, from the information provided.
For a prospective franchisee, understanding the goodwill and its amortization is important because it reflects how C12 Group accounts for its acquisitions and the value it places on intangible assets. The consistent amortization schedule suggests a stable approach to managing these assets. However, the write-off in 2023 indicates that C12 Group may reassess the value of its assets, which could impact its financial statements.
To gain a clearer picture, a potential franchisee should ask C12 Group for the initial value of the goodwill, details on how it is calculated, and how the write-off of goodwill related to C12 Atlanta affected the company's overall financial health. Understanding these factors will help in assessing the financial stability and accounting practices of C12 Group.