What was the total value of Canopy Lawn Care's current liabilities as of September 30, 2023?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| Liabilities | |||
|---|---|---|---|
| Accounts payable and accrued expenses | $ 7 ,890,614 | $ 7 ,737,340 | $ 3 ,264,529 |
| Contract liability - deferred revenue on franchise sales | 9 36,343 | 2 ,189,795 | 1 ,619,650 |
| Contract liability - customer deposits | 1 ,016,629 | 1 ,518,782 | 7 80,338 |
| Operating lease liabilities, current portion | 9 65,045 | 6 64,894 | - |
| Total Current Liabilities | 1 0,808,631 | 1 2,110,811 | 5 ,664,517 |
Source: Item 23 — RECEIPT (FDD pages 55–199)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the company's total current liabilities as of September 30, 2023, were $5,664,517. Current liabilities represent the company's obligations that are due within one year. These liabilities include accounts payable and accrued expenses, contract liabilities related to deferred revenue on franchise sales and customer deposits, and the current portion of operating lease liabilities.
For a prospective franchisee, understanding the franchisor's liabilities can provide insight into the company's financial stability and its ability to meet short-term obligations. A high level of current liabilities relative to current assets may indicate potential liquidity issues, which could impact the franchisor's ability to support its franchisees. Conversely, a manageable level of current liabilities suggests that the franchisor is financially healthy and capable of fulfilling its obligations.
It's important to note that this figure is just a snapshot in time and can fluctuate. Reviewing the trend of current liabilities over several years, as presented in the table, can provide a more comprehensive understanding of the franchisor's financial management. Additionally, comparing these figures to industry benchmarks can help assess whether Canopy Lawn Care's liabilities are within a reasonable range for a franchise system of its size and maturity.
Prospective franchisees should consider these figures in conjunction with other financial data in the FDD, such as revenue, expenses, and assets, to gain a holistic view of Canopy Lawn Care's financial health. Consulting with a financial advisor is recommended to fully understand the implications of these financial statements.