What was the amount of cash paid for Bumble Bee of LA by Canopy Lawn Care in 2024?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
94,476) | | Due to affiliates | (3,008,785) $ 93,203,111 | | | |
Bumble-LA
On May 1, 2023, the Company acquired the assets Bumble-LA for the purpose of adding a roofing contractor brand to the existing portfolio. After net working capital adjustments, the purchase price of Bumble-LA was approximately $3,800,000 which includes an earnout provision of approximately $2,268,000, an estimate based on a percentage of the new formed franchisor's, Bumble, future franchise and royalties revenues. The acquisition was funded by capital contributions from Empower consisting of units of ownership interest in Bobcat Holdings valued at approximately $200,000 and cash. During 2024, additional consideration of $1,396,250 was paid to the former owner, which was comprised of $975,000 of ownership interest in Bobcat Holdings and $441,250 in cash. This payment was made within the measurement period of the acquisition, resulting in the recognition of additional goodwill.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Canopy Lawn Care's parent company, Outdoor Living Brands, acquired Bumble-LA on May 1, 2023. The purchase price included an earnout provision. During 2024, additional consideration of $1,396,250 was paid to the former owner, which consisted of $975,000 of ownership interest in Bobcat Holdings and $441,250 in cash. This cash payment was made within the measurement period of the acquisition, leading to the recognition of additional goodwill.
In the consolidated statement of cash flows, under the Cash Flows from Investing Activities section, the line item "Cash paid for Bumble Bee of LA" shows an amount of ($421,250) for the year 2024.
Therefore, the total cash paid for Bumble Bee of LA in 2024 was $441,250 as part of the additional consideration and ($421,250) as shown in the consolidated statement of cash flows.