What is the definition of 'Book Value' for a Canopy Lawn Care vehicle?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
The "Book Value" of a Vehicle means the sum of (i) the "Delivered Price" of the Vehicle as set forth in the applicable Schedule minus (ii) the total Depreciation Reserve paid by Lessee to Lessor with respect to such Vehicle plus (iii) all accrued and unpaid rent and/or other amounts owed by Lessee with respect to such Vehicle.
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the 'Book Value' of a vehicle is a calculated value used at the end of the lease term to determine if additional rent is owed or if the lessor owes a terminal rental adjustment to the lessee.
The 'Book Value' is calculated by taking the 'Delivered Price' of the vehicle, as specified in the lease schedule, and subtracting the total Depreciation Reserve paid by the lessee. To this subtotal is added all accrued and unpaid rent and/or other amounts owed by the lessee with respect to the vehicle. This final sum is the 'Book Value'.
This definition is important because it determines the financial reconciliation between Canopy Lawn Care and the franchisee at the end of the vehicle lease term. If the 'Book Value' exceeds the wholesale value or 20% of the delivered price, the franchisee will owe additional rent. Conversely, if the 'Book Value' is less than those benchmarks, Canopy Lawn Care may owe the franchisee a refund.