What was the amount of Canopy Lawn Care's member's equity as of September 30, 2022?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Liabilities | |||
|---|---|---|---|
| Accounts payable and accrued expenses | $ 7 ,890,614 | $ 7 ,737,340 | $ 3 ,264,529 |
| Contract liability - deferred revenue on franchise sales | 9 36,343 | 2 ,189,795 | 1 ,619,650 |
| Contract liability - customer deposits | 1 ,016,629 | 1 ,518,782 | 7 80,338 |
| Operating lease liabilities, current portion | 9 65,045 | 6 64,894 | - |
| Total Current Liabilities | 1 0,808,631 | 1 2,110,811 | 5 ,664,517 |
| Long-Term Liabilities | |||
| Operating lease liabilities, net of current portion | 4 ,676,367 | 3 ,117,530 | - |
| Due to affiliated companies | 6 ,475,895 | 4 ,757,068 | - |
| 5 25,000 | 5 25,000 | - | |
| Note payable | |||
| 1 1,677,262 | 8 ,399,598 | - | |
| Noncontrolling Interest (Deficit) | (296,513) | (119,883) | - |
| Member's Equity | 2 44,456,766 | 2 49,909,128 | 1 60,435,047 |
| $ 2 66,646,146 | $ 2 70,299,654 | $ 1 66,099,564 |
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the company's member's equity as of September 30, 2022, was $160,435,047. This figure represents the ownership stake of the members in the company at that specific point in time. Member's equity is a key indicator of the company's financial health and stability.
For a prospective Canopy Lawn Care franchisee, a substantial member's equity suggests that the company has a strong financial foundation. This can be reassuring, as it implies that Canopy Lawn Care is capable of supporting its franchisees and investing in the growth of the franchise system. A higher equity can also mean the company is less reliant on debt financing, which can reduce financial risk.
It is important to note that member's equity can fluctuate over time due to various factors, such as profits, losses, investments, and distributions. Therefore, while the $160,435,047 figure provides a snapshot of Canopy Lawn Care's financial position as of September 30, 2022, it is essential to review the company's more recent financial statements to assess its current financial health. Franchisees should also compare this figure to those of other franchise systems they are considering to benchmark Canopy Lawn Care's financial stability.
When evaluating a franchise opportunity, potential franchisees should carefully examine the franchisor's balance sheet, including the member's equity, to gain a comprehensive understanding of the franchisor's financial strength and stability. Consulting with a financial advisor can help in interpreting these financial statements and assessing the overall risk and reward of investing in a Canopy Lawn Care franchise.