Why were no additional technology fees imputed for the Bigfoot Forestry Company-Owned Outlet?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, no additional technology fees were imputed for the company-owned outlet because the actual expenses incurred by the company-owned outlet for goods and services covered by the technology fee exceeded what a franchised outlet would have incurred. The company-owned outlet spent $5,447 on these goods and services, while a franchised outlet would have spent $4,200 plus $504 for six additional email accounts at $7 per account per month, totaling $4,704.

Bigfoot Forestry franchisees are required to pay a technology fee of $350 per month, which totals $4,200 annually. This fee covers tech support, a Microsoft 365 license, and two email accounts. The company-owned outlet did not pay this fee directly to Bigfoot Forestry during the measuring year. Instead, it directly paid suppliers for the equivalent goods and services.

In the EBITDA calculation, Bigfoot Forestry imputed certain fees and costs to reflect what a franchised outlet would typically incur. However, because the company-owned outlet's actual expenses for technology-related goods and services were higher than the imputed technology fees for a franchisee, no additional technology fees were added in the EBITDA calculation. This approach ensures a more accurate comparison of the company-owned outlet's performance to that of a potential franchised outlet.