What was the value of right-of-use assets obtained in exchange for lease liabilities for C12 Group?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
----------------|---------------| | Operating lease expense included in Technology | 2,896 | | Total operating lease costs | $ 124,376 |
The following summarizes the supplemental cash flow information for the year ended December 31, 2022:
| Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases | $ 129,194 |
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, right-of-use assets obtained in exchange for lease liabilities totaled $427,643. This figure represents the value of assets that C12 Group acquired through operating leases. These assets are recognized on the balance sheet and are offset by corresponding lease liabilities, reflecting the obligation to make future lease payments.
For a prospective C12 Group franchisee, understanding right-of-use assets and lease liabilities is crucial because it impacts the company's financial statements. The recognition of these assets and liabilities provides a more transparent view of the company's leasing activities and financial obligations. This accounting treatment is standard under generally accepted accounting principles (GAAP) to ensure that all significant lease obligations are reflected on the balance sheet.
It is important to note that the value of right-of-use assets and lease liabilities can change over time due to factors such as new leases, lease modifications, and changes in lease terms. Franchisees should be aware of how these changes can affect C12 Group's financial position and should seek clarification from the franchisor regarding any significant lease-related transactions.