What was the total value of Canopy Lawn Care's leasehold improvements as of September 30, 2024?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
t (Continued)
Property and equipment consists of the following at September 30:
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Leasehold improvements | $ 2,733,134 | $ 2,295,625 | $ 799,907 |
| Furniture and fixtures | 282,614 | 276,558 | 276,558 |
| Office equipment | 190,411 | 38,506 | 20,273 |
| Vehicles and equipment | 1,949,857 | 1,573,129 | 1,104,812 |
| Computer equipment and software | 162,420 | 143,479 | - |
| Construction in progress | 61,617 | - | - |
| 5,380,053 | 4,327,297 | 2,201,550 | |
| Less: accumulated depreciation and | |||
| amortization | (1, |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to Canopy Lawn Care's 2025 Franchise Disclosure Document, the value of leasehold improvements as of September 30, 2024, was $2,733,134. This figure represents the cost of improvements made to leased properties that Canopy Lawn Care uses for its business operations. These improvements are considered assets and are subject to depreciation over their useful life.
For a prospective Canopy Lawn Care franchisee, understanding the value of leasehold improvements is important for assessing the company's financial health and capital investments. Leasehold improvements can include a variety of upgrades or modifications to leased spaces, such as new flooring, wall treatments, or built-in fixtures. The amount invested in these improvements can indicate the level of commitment Canopy Lawn Care has made to its leased locations.
It is also important to note that these leasehold improvements are subject to depreciation and amortization, which are accounting methods used to allocate the cost of the assets over their useful life. The accumulated depreciation and amortization for all assets, including leasehold improvements, was ($1,381,794) as of September 30, 2024. This means that the net book value of these assets, which is the original cost less accumulated depreciation, is lower than the initial investment.
Franchisees should consider these figures when evaluating the overall financial condition of Canopy Lawn Care and comparing it to other franchise opportunities. Understanding the company's investment in leasehold improvements and how these assets are depreciated can provide insights into its long-term financial strategy and asset management practices.