What was the net value of property and equipment, after accumulated depreciation, for C12 Group in 2021?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
cial statements of which an unmodified opinion was expressed on those financial statements.
Schriver, Carmona & Company, PLLC
San Antonio, Texas March 15, 2023
Consolidated Balance Sheets December 31, 2022 and 2021
| Assets | 2022 | 2021 |
|---|---|---|
| Current Assets: Cash and Cash Equivalents Restricted Cash Accounts Receivable Supplies Inventory and Other Assets | $ 1,015,305 918,064 535,847 219,560 | $ 557,712 122,954 450,982 155,640 |
| Total Current Assets | 2,688,776 | 1,287,288 |
| Website and Computer Equipment | 459,381 | 356,713 |
| Office Furniture and Equipment | 76,140 | 76,140 |
| Less: Accumulated Depreciation | (184,256) | (104,887) |
| Property and Equipment, Net of Accumulated Depreciation | 351,265 | 327,966 |
| Other Assets |
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 property and equipment, after accumulated depreciation, was $327,966 in 2021. This figure represents the original cost of C12 Group's property and equipment, such as website and computer equipment and office furniture and equipment, less the total depreciation expense recognized against those assets up to that point in time. Depreciation is the systematic allocation of the cost of an asset over its useful life, reflecting the wear and tear or obsolescence of the asset.
For a prospective C12 Group franchisee, understanding the net value of property and equipment can provide insights into the company's investment in its physical assets and technology. It's important to note that these figures reflect the financial position of the franchisor, C12 Group, itself, and not the investment required by individual franchisees to set up their own operations. Franchisees will typically need to make their own investments in property and equipment, depending on the nature of their franchise and operational needs.
The FDD also details C12 Group's accounting policies related to property and equipment. Property is recorded at cost, and impairments are recognized when the net carrying costs exceed their fair value and are not recoverable. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, which are 5 years for website and computer equipment and 5-7 years for office furniture and equipment. Leasehold improvements are depreciated over 3 years. These policies provide transparency into how C12 Group manages and accounts for its assets, which can be useful for potential investors or franchisees assessing the company's financial practices.
Reviewing these figures in conjunction with other financial statement data, such as revenue and expenses, can provide a more comprehensive understanding of C12 Group's financial health and operational efficiency. Prospective franchisees should also inquire about any planned capital expenditures or significant changes in accounting policies that could impact future financial performance.