Which entities are included in the consolidated financial statements with OLB Holdco for Canopy Lawn Care?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
GNIFICANT ACCOUNTING POLICIES
Principles of Consolidation and Presentation
The accompanying consolidated financial statements include the accounts of OLB Holdco and its wholly-owned subsidiaries listed below:
- Archadeck Franchisor, LLC ("Archadeck")
- OLB Supply Chain, LLC ("OLB Supply")
- Conserva Irrigation Franchisor, LLC ("Conserva")
- Outdoor Lighting Perspectives Franchisor, LLC ("OLP")
- Superior Fence and Rail Franchisor, LLC ("SFR") Formed on December 15, 2021 (Note 7).
- Superior Fence and Rail of North Florida, LLC ("SFR-NOFL") Acquired on December 15, 2021 (Note 7).
- Koala Insulation, LLC ("Koala") Acquired on April 13, 2023 (Note 7).
- Wallaby Windows Franchisor, LLC ("Wallaby") Formed on April 13, 2023 (Note 7).
- Wallaby Windows of Melbourne, LLC ("Wallaby-Melbourne") Acquired on April 13, 2023 (Note 7).
- Bumble Roofing Franchisor, LLC ("Bumble") Formed on May 1, 2023 (Note 7).
- Bumble Roofing of LA, LLC Acquired on May 1, 2023 (Note 7).
- Canopy Franchise Corporation ("Canopy") Acquired 60% on June 13, 2023 (Note 7).
- JJB Franchisor, LLC ("JJB") Formed to acquire Junk, Junk, Baby! Franchising, LLC and Junk, Junk Baby! IP, LLC on August 31, 2023. This entity was discontinued in 2024 (Note 7).
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Principles of Consolidation and Presentation (Continued)
The accompanying consolidated financial statements present the operations, equity and cash flows of OLB Holdco and its wholly-owned subsidiaries as of and for the years ending September 30, 2024, 2023, and 2022. Intercompany transactions and balances have been eliminated in consolidation.
The Company follows accounting standards set by the Financial Accounting Standards Board ("FASB"). The FASB sets accounting principles generally accepted in the United States of America ("GAAP").
Adoption of New Accounting Policies
Accounting Standards Update 2016-02, Leases
Effective October 1, 2022, the Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842)
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the consolidated financial statements include the accounts of OLB Holdco and its wholly-owned subsidiaries. Canopy Franchise Corporation ("Canopy") was acquired by OLB Holdco on June 13, 2023, with OLB Holdco acquiring 60% of Canopy's outstanding equity.
As OLB Holdco holds greater than 50% of the voting interest in Canopy Lawn Care, all of Canopy's assets, liabilities, and operations from the date of purchase through September 30, 2023, are reflected in the consolidated financial statements. This means that the financial performance and position of Canopy Lawn Care are integrated into the overall financial reporting of OLB Holdco.
In practical terms, this consolidation provides a comprehensive view of the financial health of OLB Holdco, including the impact of its investment in Canopy Lawn Care. For a prospective franchisee, this indicates that the financial statements reflect the performance of all entities under the OLB Holdco umbrella, offering a broader understanding of the company's financial stability.
The consolidated financial statements present the operations, equity, and cash flows of OLB Holdco and its wholly-owned subsidiaries as of and for the years ending September 30, 2024, 2023, and 2022. Intercompany transactions and balances have been eliminated in consolidation. This provides a clearer picture of the overall financial performance of the group, without the distortion of internal transactions.