Until what month and year does C12 Group have operating leases for office space and equipment?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company has operating leases for office space and office equipment through March 2025. The lease for office space includes an option to extend the lease for up to 10 years. The exercise of lease renewal options is at the Company's sole discretion. The lease agreements do not contain any material residual value guarantees or material restrictive covenants.
The following summarizes the line items in the consolidated balance sheet which include amounts for right-to-use assets and lease liabilities as of December 31, 2022:
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to the 2025 C12 Group Franchise Disclosure Document, C12 Group has operating leases for office space and equipment that extend through March 2025. The lease agreement for the office space includes an option for C12 Group to extend the lease for up to 10 years, but exercising this option is at C12 Group's sole discretion.
These leases do not contain any material residual value guarantees or material restrictive covenants. In 2023, the rent expense for these leases totaled approximately $134,000, while in 2022, it was approximately $124,000.
For a prospective franchisee, this information is relevant as it provides insight into C12 Group's financial obligations and operational commitments. Understanding the terms and duration of these leases can help franchisees assess the financial stability and long-term planning of C12 Group. The potential for lease extension also indicates possible future operational strategies and facility needs.