What is the timeframe considered when evaluating C12 Group LLC's ability to continue as a going concern?

According to C12 Group's 2025 Franchise Disclosure Document, when preparing financial statements, the company's management must evaluate conditions or events that could raise doubts about C12 Group's ability to continue operating as a going concern. This evaluation considers these conditions in the aggregate. The timeframe for this assessment is within one year after the date the financial statements are available to be issued.

This means that C12 Group's management and auditors are specifically looking at the company's financial health and stability over the next 12 months from the date the financial statements are finalized. They need to determine if there are any significant issues that could prevent C12 Group from continuing its operations, such as being unable to pay its debts or maintain profitability.

For a prospective franchisee, this is an important consideration. It indicates that the franchisor's financial stability is regularly assessed. If there were substantial doubts about C12 Group's ability to continue as a going concern, it could impact the support and services they provide to franchisees. Therefore, reviewing the financial statements and auditor's report is crucial to understanding the franchisor's financial health and the potential risks involved in investing in a C12 Group franchise.