What is excluded from the appraised value of a Canopy Lawn Care franchise when determining the purchase price?

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, when determining the purchase price of a franchise, the appraised values will exclude any consideration for goodwill or going concern value created by the Marks and business system licensed to the franchisee. This means that the appraisal will focus on the tangible assets and hard value of the business, rather than the intangible value associated with the Canopy Lawn Care brand and its established operational system.

This exclusion is significant for a prospective franchisee because it affects the potential resale value of the franchise. If Canopy Lawn Care decides to purchase the franchise back, the franchisee will not be compensated for the brand recognition, customer loyalty, or the established business processes that contribute to the franchise's success. The purchase price will be based solely on the fair market value of the tangible assets.

This approach is relatively common in franchising, as the franchisor typically retains ownership of the brand and system. By excluding goodwill and going concern value, Canopy Lawn Care ensures that it is not paying for the value it created and maintains through its trademarks and operational methods. Franchisees should be aware of this when considering the long-term financial implications of investing in a Canopy Lawn Care franchise, particularly if they plan to sell the business in the future.

In the event that Canopy Lawn Care and the franchisee cannot agree on the fair market value of the assets, an independent appraiser will be designated by each party. The average of the two appraised values will then be binding, providing a mechanism for resolving valuation disputes. This process ensures that both parties have a voice in determining the final purchase price, while still adhering to the principle of excluding goodwill and going concern value.