What were the total operating expenses for Canopy Lawn Care in 2023 (as restated)?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
ED STATEMENTS OF INCOME FOR THE YEARS ENDING SEPTEMBER 30, 2024, 2023, AND 2022
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |
|---|---|---|---|
| Revenue | |||
| Fencing and rail revenues | $ 24,961,275 | $ 23,390,797 | $ 16,879,944 |
| Franchise royalties and fees | 31,551,158 | 21,471,627 | 13,380,514 |
| Product sales | 11,624,045 | 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 | 12,430,539 | 10,807,586 | 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 |
| 102,246,523 | 79,532,634 | 49,494,043 | |
| Cost of Product Sales | 26,068,176 | 24,051,826 | 16,544,077 |
| Operating Expenses | 45,261,207 | 37,487,987 | 21,404,407 |
| Income from Operations | 30,917,140 | 17,992,821 | 11,545,559 |
| Other Income (Expense) | |||
| Depreciation and amortization | (10,773,355) | (7,910,727) | (5,494,567) |
| Other income | 315,233 | (161,414) | 38,521 |
| (10,458,122) | (8,072,141) | (5,456,046) | |
| Net Income Before Noncontrolling Interest | 20,459,018 | 9,920,680 | 6,089,513 |
| Loss Attributable to Noncontrolling Interest | 176,630 | 120,083 | - |
| Net Income Attributable to Outdoor Living | $ |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the total operating expenses for the company in 2023 (as restated) were $37,487,987. This figure is part of the consolidated financial statements for OLB Holdco, LLC, which includes Canopy Lawn Care and its subsidiaries. These expenses are a significant factor in determining the company's income from operations, which was $17,992,821 for the same period.
For a prospective Canopy Lawn Care franchisee, understanding the operating expenses of the franchisor is crucial. It provides insight into how the company manages its resources and what costs are involved in running the overall business. While this figure represents the franchisor's expenses, franchisees will also incur their own operating expenses, which will impact their profitability. Therefore, it's important to consider how the franchisor's financial performance might influence the support and services they can provide to franchisees.
It's also worth noting that these figures are "as restated," indicating that adjustments were made to the original financial statements. This could be due to various factors, such as changes in accounting policies or the discovery of errors. Franchisees should inquire about the reasons for these restatements to fully understand the financial history of Canopy Lawn Care. Additionally, the FDD includes several notes that provide further details on the company's accounting policies, related party transactions, and business acquisitions, which can offer a more comprehensive view of its financial health.
Finally, the document shows that Canopy Lawn Care's revenue for 2023 was $79,532,634, with a cost of product sales of $24,051,826. These figures, along with the operating expenses, contribute to the overall financial picture of the company and can help potential franchisees assess the stability and growth potential of the franchise system. Reviewing these financial statements and asking detailed questions about the franchisor's financial performance is a critical step in the due diligence process.