What was the depreciation and amortization expense for Canopy Lawn Care in 2023?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ed as of September 30, 2024.
FRANCHISEES THAT HAVE LEFT THE SYSTEM
Franchisees who had a business terminated, canceled, or not renewed, or otherwise ceased to do business during the fiscal year ended September 30, 2024, or who had not communicated with us within 10 weeks of the issuance date of this disclosure document
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| ("As Restated") | ("As Restated") | ||||
| Revenue | |||||
| Fencing and rail revenues | $ 2 4,961,275 | $ 2 3,390,797 | $ 1 6,879,944 | ||
| Franchise royalties and fees | 3 1,551,158 | 2 1,471,627 | 1 3,380,514 | ||
| Product sales | 1 1,624,045 | 9 ,875,832 | 8 ,878,823 | ||
| Residential and commercial roofing | 5 ,849,769 | 4 ,131,506 | - | ||
| Window and door installation | 3 ,448,901 | 1 ,058,329 | - | ||
| Franchise fees | 1 2,430,539 | 1 0,807,586 | 5 ,641,473 | ||
| Ancillary | 7 ,854,946 | 5 ,721,908 | 2 ,553,819 | ||
| Advertising fund contributions | 4 ,525,890 | 3 ,075,049 | 2 ,159,470 | ||
| 1 02,246,523 | 7 9,532,634 | 4 9,494,043 | |||
| Cost of Product Sales | 2 6,068,176 | 2 4,051,826 | 1 6,544,077 | ||
| 4 5,261,207 | 3 7,487,987 | 2 1,404,407 | |||
| Operating Expenses | |||||
| Income from Operations | 3 0,917,140 | 1 7,992,821 | 1 1,545,559 | ||
| Other Income (Expense) | |||||
| Depreciation and amortization | (10,773,355) | (7,910,727) | (5,494,567) | ||
| Other income | 3 15,233 | (161,414) | 3 8,521 | ||
| (10,458,122) | (8,072,141) | (5,456,046) | |||
| Net Income Before Noncontrolling Interest | 2 0,459,018 | 9 ,920,680 | 6 ,089,513 | ||
| 1 76,630 | 1 20,083 | - | |||
| Loss Attributable to Noncontrolling Interest |
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the depreciation and amortization expense for 2023 was $(7,910,727). This figure represents the accounting expense recognized by Canopy Lawn Care for the reduction in value of its tangible and intangible assets over that year. These assets could include equipment, vehicles, software, and other items used in the business operations.
For a prospective franchisee, understanding the depreciation and amortization expense is crucial because it reflects the capital investments Canopy Lawn Care has made and how these investments are being accounted for. While depreciation and amortization are non-cash expenses, they impact the company's net income and can provide insights into the company's asset management and investment strategies. A high depreciation expense might indicate significant investments in assets, while a low expense could suggest older assets or a different accounting approach.
It's important to note that this figure represents the depreciation and amortization expense for Canopy Lawn Care as a whole, and not necessarily the expenses a franchisee would incur. A franchisee's depreciation and amortization expenses would depend on their own investments in assets required to operate their franchise. However, understanding the franchisor's financial statements can provide a broader context for assessing the financial health and stability of the overall Canopy Lawn Care franchise system.
Prospective franchisees should consider this information in conjunction with other financial data provided in the FDD, and consult with a financial advisor to understand the full implications of these expenses on the franchisor's and potentially their own business.