Which specific entities are included in the consolidated financial statements of the C12 Group?

According to the 2025 FDD, the consolidated financial statements for C12 Group include the accounts of The C12 Group, LLC and C12 Atlanta, LLC. These statements combine the financial results of both entities into a single report, providing a comprehensive view of the company's overall financial position and performance. This consolidation is a standard accounting practice when a parent company (The C12 Group, LLC) controls a subsidiary (C12 Atlanta, LLC).

The purpose of consolidating financial statements is to present a clear picture of the entire economic entity under the parent company's control. This helps stakeholders, such as potential franchisees, understand the financial health and performance of the entire organization, rather than just the parent company. By including C12 Atlanta, LLC, the consolidated statements reflect the combined assets, liabilities, revenues, and expenses of both entities.

The FDD also notes that all significant inter-company account balances and transactions have been eliminated in the consolidated financial statements. This elimination prevents the double-counting of financial activity and ensures that the consolidated statements accurately reflect the C12 Group's financial performance with external parties. This is a typical procedure in consolidated financial reporting to avoid inflating revenue or assets.

However, it's important to note that the FDD also states that C12 Atlanta, LLC was sold to a third party effective January 31, 2023. Therefore, while the 2022 and 2021 consolidated financial statements include C12 Atlanta, LLC, future financial statements may not include this entity. Prospective franchisees should consider this change when reviewing the historical financial performance of C12 Group.