What was the reported value of Canopy Lawn Care's intangibles, net, in 2024?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |||
| Current Assets | |||||
| Cash | $ 2 ,941,232 | $ 1 ,737,401 | $ 1 ,492,295 | ||
| Royalties and accounts receivable, net | 1 0,215,595 | 8 ,416,631 | 5 ,544,544 | ||
| Rebates receivable, net | 1 ,889,160 | 1 ,815,484 | - | ||
| Notes receivable | 9 7,904 | 2 4,492 | 2 31,429 | ||
| Inventory | 3 ,461,346 | 3 ,215,098 | 9 50,753 | ||
| Prepaid expenses and other | 8 54,615 | 2 ,211,505 | 1 ,436,976 | ||
| Total Current Assets | 1 9,459,852 | 1 7,420,611 | 9 ,655,997 | ||
| Property and Equipment, Net | 3 ,998,259 | 3 ,511,245 | 1 ,952,874 | ||
| Other Assets | |||||
| Notes receivable, net of current portion | 6 23,693 | 2 93,452 | 1 99,591 | ||
| Intangibles, net | 2 37,978,533 | 2 46,073,099 | 1 53,303,800 | ||
| Right-of-use assets | 4 ,548,121 | 2 ,972,324 | - | ||
| Other assets | 3 7,688 - | 2 8,923 | 2 8,923 - | 9 58,379 | |
| Due from affiliated companies | |||||
| 2 43,188,035 | 2 49,367,798 $ 2 66,646,146 | 1 54,490,693 | $ 2 70,299,654 | $ 1 66,099,564 |
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the value of intangibles, net, for the year 2024 was $237,978,533. This figure represents the net value of intangible assets, which can include items like goodwill, trademarks, and patents, after accounting for amortization. Amortization is the process of expensing the cost of an intangible asset over its useful life.
For a prospective franchisee, understanding the value and composition of these intangible assets is crucial. A significant portion of the company's assets being tied to intangibles suggests that Canopy Lawn Care's brand recognition, proprietary technology, or established processes play a major role in its business model. This could be a positive indicator of brand strength and market position.
However, it's also important to consider the risks associated with intangible assets. Unlike physical assets, the value of intangibles can be more subjective and susceptible to market changes or competitive pressures. Franchisees should inquire about the specific types of intangible assets Canopy Lawn Care holds and how the company protects and maintains their value. Understanding the amortization schedule and the factors that could impact the value of these assets is also advisable.
Comparing the trend of intangible asset values over the past few years, as presented in the FDD, can provide further insights. In Canopy Lawn Care's case, the intangibles, net, decreased from $246,073,099 in 2023 to $237,978,533 in 2024. This decrease could be due to amortization, impairment, or other factors, and warrants further investigation to ensure the long-term stability and value of the franchise investment.