What was the operating lease expense included in Office and Equipment for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
| Operating Lease Right-of-Use Asset | $ 303,466 |
|---|---|
| Current Portion of Operating Lease Liability | 131,566 |
| Operating Lease Liability, less Current Portion | 164,568 |
| Total Lease Liability | $ 296,134 |
The following summarizes the line items in the income statement which include the components of lease expense for the year ended December 31, 2022:
| Operating l
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the operating lease expense included in Office and Equipment was $121,480. This figure represents the cost C12 Group incurred for leasing office space and equipment used in its operations.
Operating leases are a common business practice, allowing companies to use assets without purchasing them outright. For a prospective C12 Group franchisee, understanding these expenses in the context of the franchisor's financial statements can provide insights into the overhead costs associated with running the franchise system.
Reviewing these expenses can help potential franchisees assess the financial health and stability of C12 Group. It's important to note that these figures reflect the franchisor's expenses and may not directly translate to the costs a franchisee will incur, as franchisees typically operate independently and manage their own leases and equipment.