What was the total value of Canopy Lawn Care's right-of-use assets in 2023?
Canopy_Lawn_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
| ASSETS | |||||
|---|---|---|---|---|---|
| 2024 | 2023 ("As Restated") | 2022 ("As Restated") | |||
| Current Assets | |||||
| Cash | $ 2 ,941,232 | $ 1 ,737,401 | $ 1 ,492,295 | ||
| Royalties and accounts receivable, net | 1 0,215,595 | 8 ,416,631 | 5 ,544,544 | ||
| Rebates receivable, net | 1 ,889,160 | 1 ,815,484 | - | ||
| Notes receivable | 9 7,904 | 2 4,492 | 2 31,429 | ||
| Inventory | 3 ,461,346 | 3 ,215,098 | 9 50,753 | ||
| Prepaid expenses and other | 8 54,615 | 2 ,211,505 | 1 ,436,976 | ||
| Total Current Assets | 1 9,459,852 | 1 7,420,611 | 9 ,655,997 | ||
| Property and Equipment, Net | 3 ,998,259 | 3 ,511,245 | 1 ,952,874 | ||
| Other Assets | |||||
| Notes receivable, net of current portion | 6 23,693 | 2 93,452 | 1 99,591 | ||
| Intangibles, net | 2 37,978,533 | 2 46,073,099 | 1 53,303,800 | ||
| Right-of-use assets | 4 ,548,121 | 2 ,972,324 | - | ||
| Other assets | 3 7,688 - | 2 8,923 | 2 8,923 - | 9 58,379 | |
| Due from affiliated companies | |||||
| 2 43,188,035 | 2 49,367,798 $ 2 66,646,146 | 1 54,490,693 | $ 2 70,299,654 | $ 1 66,099,564 |
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 value of their right-of-use assets in 2023 was $2,972,324. This figure represents the company's financial stake in assets it uses but does not own outright, such as leased properties or equipment. These assets are included on the balance sheet as 'right-of-use' assets to reflect the company's rights to use these assets over the lease term.
For a prospective franchisee, understanding the value of right-of-use assets can provide insights into Canopy Lawn Care's operational structure and reliance on leased assets. It's important to note that right-of-use assets are typically associated with corresponding lease liabilities, which represent the company's obligation to make lease payments. The FDD also lists operating lease liabilities, with $3,117,530 net of current portion in 2023.
Franchisees should consider how these lease obligations might impact the franchisor's financial stability and ability to support its franchisees. Additionally, understanding the nature of these leased assets can help franchisees assess the resources Canopy Lawn Care has available to support their operations and growth. Reviewing these figures in comparison to previous years can also reveal trends in the company's leasing strategies and asset management practices.