Over what period does C12 Group amortize goodwill?
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)
According to C12 Group's 2025 Franchise Disclosure Document, goodwill, which represents the cost of assets acquired in excess of fair value, is amortized over a 10-year period. The annual amortization expense is expected to be $11,995 through 2031.
For a prospective C12 Group franchisee, this means that any goodwill recognized in connection with the acquisition of assets will be systematically expensed over a decade. This accounting treatment affects the company's reported earnings, as the amortization expense reduces net income each year.
It's important to note that the accumulated amortization of goodwill totaled $47,981 as of December 31, 2024, and $35,986 as of December 31, 2023. Additionally, the sale of C12 Atlanta in 2023 resulted in a write-off of $80,862 in goodwill related to that subsidiary, demonstrating that goodwill can be impacted by business transactions.