In what years do the operating leases for C12 Group's office space and equipment expire?
C12_Group Franchise · 2025 FDDAnswer from 2025 FDD Document
ntive is forfeited.
The accrual for the LTIP is updated annually based on the Company's valuation. As of December 31, 2024, the balance accrued under the LTIP was $222,768.
NOTE D – OPERATING LEASES
The Company has operating leases for certain office space and equipment expiring in 2025 and 2029. The leases do not contain options to renew. Operating lease expense is recognized in operating expenses, office expenses. Rent expense under such leases totaled approximately $138,000 in 20
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to C12 Group's 2025 Franchise Disclosure Document, the company has operating leases for office space and equipment that expire in 2025 and 2029. The document specifies that these leases do not include options to renew. In 2024, the total rent expense for these leases was approximately $138,000, while in 2023, it was approximately $134,000.
For a prospective C12 Group franchisee, this information provides insight into the company's financial obligations and lease management. The absence of renewal options on the leases expiring in 2025 and 2029 suggests that C12 Group may need to renegotiate or relocate its office space and equipment in the coming years. This could potentially impact the company's operational costs and strategies.
The weighted-average remaining lease term was 2.15 years in 2024 and 1.16 years in 2023, with weighted-average discount rates of 2.62% and 1.08% respectively. These figures offer a more detailed understanding of the lease terms and financial implications for C12 Group. Franchisees may want to inquire about the company's plans for addressing these expiring leases and how any changes might affect the support and resources available to them.
Understanding the franchisor's lease commitments can help a prospective franchisee assess the financial stability and long-term planning of C12 Group. It's a common practice for franchisors to lease office space and equipment, and the terms of these leases can have a significant impact on the overall financial health of the company.