What was the reported value of Canopy Lawn Care's franchise agreements in 2022?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2025 | $ 9,852,377 | |------------|------------------| | 2026 | 9,746,531 | | 2027 | 8,557,134 | | 2028 | 8,170,303 | | 2029 | 4,231,731 | | Thereafter | 4,202,893 $ 44,760,969 | Intangible amortization expense was $10,205,863, $7,343,351, and $
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 FDD, Canopy Lawn Care's intangible amortization expense, which includes franchise agreements, was $5,253,619 for the year ending September 30, 2022. This figure represents the expense recognized during that period related to the use of intangible assets, such as franchise agreements.
For a prospective franchisee, this number indicates the scale of the franchisor's investment in intangible assets and how these assets are being utilized over time. Amortization is the systematic allocation of the cost of an intangible asset over its useful life, reflecting the gradual consumption of its economic benefits. A higher amortization expense could suggest a larger base of intangible assets or a shorter useful life assigned to those assets.
It's important to note that this amortization expense does not directly translate to the value of Canopy Lawn Care's franchise agreements. Instead, it reflects the portion of the cost of those agreements that was recognized as an expense in 2022. The actual value of the franchise agreements would be the total amount initially recorded as an asset, which is not specified in this excerpt. To understand the total value of the franchise agreements, a prospective franchisee should review the full financial statements and potentially consult with a financial advisor.