Do the operating leases held by C12 Group contain options to renew?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ntive is forfeited.
The accrual for the LTIP is updated annually based on the Company's valuation. As of December 31, 2024, the balance accrued under the LTIP was $222,768.
NOTE D – OPERATING LEASES
The Company has operating leases for certain office space and equipment expiring in 2025 and 2029. The leases do not contain options to renew. Operating lease expense is recognized in operating expenses, office expenses. Rent expense under such leases totaled approximately $138,000 in 20
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 FDD, C12 Group has operating leases for office space and equipment that expire in 2025 and 2029. These leases do not include options to renew. In 2024, the rent expense for these leases totaled approximately $138,000, while in 2023, it was approximately $134,000. These expenses are recognized as operating expenses, specifically office expenses.
The weighted-average remaining lease term was 2.15 years in 2024 and 1.16 years in 2023. The weighted-average discount rate used for these leases was 2.62% in 2024 and 1.08% in 2023. These figures are important for understanding the financial obligations C12 Group has regarding its leases and how they are accounted for in its financial statements.
Prospective franchisees should note that C12 Group's lease obligations do not include renewal options, which could impact long-term financial planning and location strategy. Understanding the lease terms and expenses is crucial for assessing the overall financial health and stability of C12 Group.