What was the lease expense for Canopy Lawn Care in 2024?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
TATEMENTS OF CASH FLOWS FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Cash Flows from Operating Activities: | |||
| Net income | $ 20,459,018 | $ 9,920,680 | $ 6,089,513 |
| Adjustments to reconcile net income | |||
| to net cash provided by operating activities: | |||
| Bad debt expense | 300,531 | 59,046 | 82,201 |
| Depreciation and amortization | 10,773,355 | 7,910,727 | 5,494,567 |
| Lease expense |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the lease expense for the company in 2024 was $940,945. This figure is part of the cash flow from operating activities reported in the financial statements. It represents the expense recognized during the year related to leases held by the company.
In addition to the lease expense, the company also reported operating lease payments of ($657,754) in 2024. This indicates the actual cash outflow for lease payments during the year was less than the total lease expense recognized. The difference between the lease expense and the operating lease payments could be due to various factors such as amortization of lease liabilities or changes in lease terms.
It's important to note that these figures reflect the overall lease expenses and payments for Outdoor Living Brands Holdco, LLC, which includes Canopy Lawn Care and its other franchise brands. These expenses are part of the broader financial activities of the parent company and may not directly represent the specific lease expenses solely attributable to Canopy Lawn Care.
A prospective franchisee should consider these figures in the context of the overall financial performance of Outdoor Living Brands and how lease obligations are managed at the corporate level. Further due diligence would be required to understand the specific lease obligations and expenses that a Canopy Lawn Care franchisee might incur.