What was the total revenue for Canopy Lawn Care franchise royalties and fees 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 |
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 revenue from franchise royalties and fees for the year 2023 (as restated) was $21,471,627. This figure represents the income Canopy Lawn Care received from its franchisees in the form of ongoing royalty payments and other fees associated with the franchise agreements.
For a prospective franchisee, this number indicates the financial health and revenue streams of Canopy Lawn Care. A higher revenue from royalties and fees can suggest a larger, more successful network of franchisees. It also reflects the franchisor's ability to generate income from its existing franchise system, which can be a positive sign of brand strength and franchisee performance.
It's important to note that this figure is 'as restated,' meaning it has been adjusted from its initially reported value. Restatements can occur for various reasons, such as accounting errors or changes in accounting policies. While not necessarily negative, a franchisee should understand why the restatement occurred and what impact it had on the financials. Reviewing previous FDDs and directly asking the franchisor for clarification on the restatement would be prudent during due diligence.
Understanding the trend of these revenues over the three years presented (2022-2024) can also provide valuable insight. The franchise royalties and fees have increased from $13,380,514 in 2022 to $21,471,627 in 2023, and further to $31,551,158 in 2024. This upward trend suggests growth and increasing revenue generation within the Canopy Lawn Care franchise system.