What was the reported value of Canopy Lawn Care's goodwill in 2023?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
Assets (Continued)
Intangible assets consists of the following at September 30:
| Estimated Useful Life | 2024 | 2023 | 2022 | |
|---|---|---|---|---|
| Franchise agreements | 7 years | $ 55,934,000 | $ 55,934,000 | $ 30,710,000 |
| Internally developed software | 5 years | 7,650,056 | 6,935,010 | 6,617,000 |
| Trademarks | 15 years | 4,286,000 67,870,056 | 4,286,000 67,155,010 | 1,840,000 39,167,000 |
| Less: accumulated amortizatio | n | (23, 109, 087) 44,760,969 | (12,903,224) 54,251,786 | (5,559,873) 33,607,127 |
| Goodwill | Indefinite | 193,217,564 | 191,821,313 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the value of goodwill reported in 2023 was $191,821,313. Goodwill, in this context, represents the intangible assets acquired when Outdoor Living Brands Holdco, LLC purchased a 60% equity stake in Canopy Lawn Care.
Goodwill is not amortized but is tested for impairment using a fair value approach. This means that instead of being written off over time like other intangible assets, Canopy Lawn Care assesses whether its value has declined. If the fair value of the reporting unit is less than its carrying amount, an impairment loss is recognized.
For a prospective Canopy Lawn Care franchisee, this valuation of goodwill is an indicator of the financial transactions and acquisitions made by the parent company, Outdoor Living Brands Holdco, LLC. While it doesn't directly impact the day-to-day operations of a franchise, it reflects the overall financial strategy and health of the parent company, which can indirectly affect the support and resources available to franchisees.