What was the total cash reported for C12 Group in 2023?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ears remain subject to examination. The Company is subject to the Texas margin tax.
Advertising: Advertising costs are expensed as incurred.
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued
Concentrations of Risk: Financial instruments that potentially expose the Company to credit risk consist principally of cash and trade accounts receivables. The Company occasionally maintains cash balances in financial institutions that exceed the amounts insured by the FDIC. The Company p
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the company held cash balances in financial institutions that exceeded the amounts insured by the FDIC. At December 31, 2023, cash balances in excess of the insured limit totaled approximately $139,000. This indicates that while C12 Group had a significant amount of cash, a portion of it was not fully protected by FDIC insurance.
For a prospective franchisee, this information is relevant in assessing the financial stability and risk management practices of C12 Group. While the company believes the risk of loss is minimal, it's important to understand that amounts exceeding the FDIC limit are subject to the financial health of the institutions holding the funds. This is a common practice for businesses that handle significant cash flow, but it's a factor to consider when evaluating the overall financial picture of the franchise.
It is important to note that the FDD only mentions the amount exceeding the insured limit, not the total cash balance. A prospective franchisee may want to inquire about the total cash position of C12 Group to get a clearer understanding of their liquidity and financial strength.