What was the amount of net distributions to the member for Canopy Lawn Care in 2022?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ENTS OF MEMBER'S EQUITY FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| Consolidated Member's Equity | Noncontrolling Interest | Total Equity | |
|---|---|---|---|
| Balance, September 30, 2021, as Previously Stated | $ 90,140,596 | $ - | $ 90,140,596 |
| Prior Period Adjustment - Change in Accounting Policy (Note 10) | 26,757 | - | 26,757 |
| Balance, September 30, 2021, as Restated | 90,167,353 | - | 90,167,353 |
| Net Income, as Restated | 6,089,513 | - | 6,089,513 |
| Distributions to Member | (5,078,245) | - | (5,078,245) |
| Contributions from Member | 69,256,426 | - | 69,256,426 |
| Balance, September 30, 2022, as Restated | 160,435,047 | - | 160,435,047 |
| Net Income (Loss), as Restated | 10,040,763 | (120,083) | 9,920,680 |
| Distributions to Member | (17,682,672) | - | (17,682,672) |
| Contributions from Member | 97,115,990 | 200 | 97,116,190 |
| Balance, September 30, 2023, as Restated | 249,909,128 | (119,883) | 249,789,245 |
| Net Income (Loss) | 20,635,648 | (176,630) | 20,459,018 |
| Distributions to Member | (26,088,010) | - | (26,088,010) |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the net distributions to the member in 2022 were $5,078,245. This figure represents the amount of money distributed from the company to its member during that fiscal year. Understanding these distributions can be important for prospective franchisees as it provides insight into the financial management and capital allocation strategies of Canopy Lawn Care.
For a potential franchisee, knowing the distribution amounts can help assess the financial stability and profitability of the company. While distributions are a normal part of business operations, significant fluctuations or large distribution amounts relative to net income could signal potential financial risks or opportunities. It's essential to consider these figures in conjunction with other financial metrics to gain a comprehensive understanding of the company's financial health.
It is also important to note that these distributions reflect the financial activities at the overall company level and may not directly correlate with the financial performance of individual franchise locations. However, understanding the franchisor's financial practices can contribute to a more informed decision-making process for prospective franchisees.