What was the net value of C12 Group's property and equipment in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
dings, and certain internal control related matters that we identified during the audit.
ADKF, P.C. San Antonio, Texas March 25, 2024
ADKF,PC
- 2 -
THE C12 GROUP, LLC Balance Sheets December 31, 2023 and 2022
| ASSETS | 2023 | 2022 |
|---|---|---|
| Current Assets: | ||
| Cash and cash equivalents | $ 1,601,398 | $ 1,015,305 |
| Restricted cash | 239,964 | 918,064 |
| Total cash | 1,841,362 | 1,933,369 |
| Accounts receivable | 592,343 | 535,847 |
| Notes receivable, current portion | 111,967 | B |
| Supply inventory | 209,905 | 169,408 |
| Prepaid expenses | 50,538 | 50,152 |
| Total current assets | 2,806,115 | 2,688,776 |
| Property and Equipment: | ||
| Office furniture, fixtures and equipment | 76,140 | 76,140 |
| Less accumulated depreciation | (42,603) | (31,726) |
| Net property and equipment | 33,537 | 44,414 |
| Other Assets: | ||
| Goodwill, net of accumulated amortization | 83,966 | 176,823 |
| Website and applications, net of accumulated amortization | 383,284 | 306,851 |
| Right-of-use operating lease assets | 163 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the net value of their property and equipment in 2023 was $33,537. This figure is calculated by taking the original value of office furniture, fixtures, and equipment, which was $76,140, and subtracting accumulated depreciation of $42,603.
For a prospective franchisee, this indicates the level of investment C12 Group itself has in physical assets to run its operations. It is important to note that these assets are recorded at cost less accumulated depreciation, which reflects the accounting value rather than the market value. The relatively low net value suggests that C12 Group's business model may not be heavily reliant on physical assets, and more dependent on intellectual property, franchise relationships, and human capital.
It's also worth noting the difference in net property and equipment from 2022 to 2023. In 2022, the net value was $44,414, which decreased to $33,537 in 2023. This decrease could be due to additional depreciation, disposal of assets, or a combination of both. A potential franchisee might want to inquire about the reasons for this change to better understand C12 Group's capital expenditure and asset management strategies.
Understanding the asset base of a franchisor like C12 Group can provide insights into the stability and nature of the business. While a low net value of property and equipment is not inherently negative, it is crucial to consider it in conjunction with other financial metrics and qualitative aspects of the franchise opportunity.