What was the total amount of advertising fund contributions for Canopy Lawn Care in 2023?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |||
|---|---|---|---|---|---|
| ("As Restated") | ("As Restated") | ||||
| Revenue | |||||
| Fencing and rail revenues | $ 2 4,961,275 | $ 2 3,390,797 | $ 1 6,879,944 | ||
| Franchise royalties and fees | 3 1,551,158 | 2 1,471,627 | 1 3,380,514 | ||
| Product sales | 1 1,624,045 | 9 ,875,832 | 8 ,878,823 | ||
| Residential and commercial roofing | 5 ,849,769 | 4 ,131,506 | - | ||
| Window and door installation | 3 ,448,901 | 1 ,058,329 | - | ||
| Franchise fees | 1 2,430,539 | 1 0,807,586 | 5 ,641,473 | ||
| Ancillary | 7 ,854,946 | 5 ,721,908 | 2 ,553,819 | ||
| Advertising fund contributions | 4 ,525,890 | 3 ,075,049 | 2 ,159,470 | ||
| 1 02,246,523 | 7 9,532,634 | 4 9,494,043 | |||
| Cost of Product Sales | 2 6,068,176 | 2 4,051,826 | 1 6,544,077 | ||
| 4 5,261,207 | 3 7,487,987 | 2 1,404,407 | |||
| Operating Expenses | |||||
| Income from Operations | 3 0,917,140 | 1 7,992,821 | 1 1,545,559 | ||
| Other Income (Expense) | |||||
| Depreciation and amortization | (10,773,355) | (7,910,727) | (5,494,567) | ||
| Other income | 3 15,233 | (161,414) | 3 8,521 | ||
| (10,458,122) | (8,072,141) | (5,456,046) | |||
| Net Income Before Noncontrolling Interest | 2 0,459,018 | 9 ,920,680 | 6 ,089,513 | ||
| 1 76,630 | 1 20,083 | - | |||
| Loss Attributable to Noncontrolling Interest | |||||
| Net Income Attributable to Outdoor Living | |||||
| Brands Holdco, LLC | $ 2 0,635,648 | $ 1 0,040,763 | $ 6 ,089,513 |
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the total advertising fund contributions for the company in 2023 amounted to $3,075,049. This figure represents the cumulative contributions made by franchisees and potentially company-owned locations to support advertising and marketing efforts for the Canopy Lawn Care brand. These funds are typically used for various advertising activities, such as digital marketing, traditional media campaigns, and local advertising initiatives.
For a prospective Canopy Lawn Care franchisee, understanding the advertising fund contributions is crucial because it directly impacts their financial obligations and the level of marketing support they can expect. The advertising fund is intended to promote the brand and attract customers, which can benefit individual franchisees by increasing their customer base and revenue. However, franchisees need to be aware of the contribution amount and how these funds are being utilized to ensure they align with their business goals.
It's important for potential franchisees to review Item 11 and Item 20 of the FDD to gain a comprehensive understanding of how the advertising fund is managed, the types of advertising activities it supports, and the historical performance of the fund. Additionally, they should inquire about the franchisor's advertising strategies and plans to ensure that the fund is being used effectively to drive business growth. Understanding the allocation and impact of these advertising funds can help franchisees make informed decisions about their investment and marketing strategies.
In the franchise industry, advertising funds are a common practice, with franchisees contributing a percentage of their gross sales to a central fund managed by the franchisor. The specific percentage and usage of the funds can vary widely among different franchise systems, so it's essential for prospective franchisees to carefully evaluate the terms and conditions related to advertising contributions before making a final decision.