What is excluded from the appraised value of the Canopy Lawn Care franchise during the purchase option?

According to Canopy Lawn Care's 2025 Franchise Disclosure Document, when determining the purchase price of a franchise during the purchase option, the appraised values will exclude any consideration for goodwill or going concern value created by the Marks (trademarks) and business system licensed to the franchisee.

This means that the appraisal will focus on the tangible assets and the fair market value of the business itself, without factoring in the brand recognition, customer loyalty, or the potential for future profits associated with the Canopy Lawn Care brand. This could result in a lower purchase price for the franchisee's business compared to what it might be worth if goodwill and going concern value were included.

For a prospective Canopy Lawn Care franchisee, this is an important consideration when evaluating the potential resale value of their franchise. It highlights that the value of the franchise is largely tied to its tangible assets and operational performance, rather than the intangible benefits of the Canopy Lawn Care brand. Franchisees should be aware that building a strong local reputation and customer base may not necessarily translate into a higher sale price if the franchisor exercises its purchase option.