Through what year is C12 Group's goodwill amortization expected to continue at $11,995 annually?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
Depreciation is provided at amounts calculated to amortize the cost of the assets over their estimated useful economic lives using straight line, generally with lives ranging from three to seven years.
Goodwill: Goodwill represents the cost of assets acquired in excess of fair value. Goodwill is amortized over a 10 year period. Amortization is expected to be $11,995 annually through 2031. Accumulate
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, goodwill amortization is expected to continue at $11,995 annually through 2031. Goodwill represents the cost of assets acquired by C12 Group in excess of fair value and is amortized over a 10-year period.
For a prospective franchisee, this means that C12 Group is systematically writing off the value of intangible assets (goodwill) over a set period, which impacts the company's financial statements. The consistent annual amortization expense of $11,995 provides a predictable reduction in the reported value of goodwill on C12 Group's balance sheet.
It is important to note that accumulated amortization totaled $47,981 as of December 31, 2024, and $35,986 as of December 31, 2023. Additionally, the sale of C12 Atlanta in 2023 resulted in a write-off of $80,862 in goodwill related to that subsidiary. These figures provide context for the overall goodwill management and amortization practices of C12 Group.