What accounting method is required for financial statements submitted to Bigfoot Forestry?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the company's financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). This indicates that franchisees are expected to adhere to GAAP standards when preparing and submitting their financial data to Bigfoot Forestry. This ensures consistency and comparability across all franchise units, allowing Bigfoot Forestry to accurately assess the financial health and performance of its franchisees.

For a prospective franchisee, this means that their financial reporting must align with GAAP. This typically involves using the accrual method of accounting, where revenues and expenses are recognized when they are earned or incurred, rather than when cash changes hands. Franchisees may need to engage a qualified accountant or CPA to ensure their financial statements comply with these standards.

Bigfoot Forestry also has the right to inspect and audit a franchisee's books and records at any time. Franchisees must cooperate fully with Bigfoot Forestry or any person they hire to conduct the audit. If an audit reveals an understatement of Gross Sales, the franchisee must immediately pay all additional fees owed, along with any late fees. Furthermore, the franchisee is responsible for reimbursing Bigfoot Forestry for the cost of the audit if it was required due to the franchisee's failure to provide information, preserve records, or file reports as required by the franchise agreement or if the audit reveals an understatement of gross sales.