What is considered a 'Qualifying Outlet' for Bigfoot Forestry's Financial Performance Representation?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
ent and other expenses incurred to lease commercial office or retail space, which we do not recommend.
- "Qualifying Outlet" means any Company-Owned Outlet or Franchised Outlet that was open and operating throughout the entire Measuring Year and provided us with all data we requested to prepare the FPR.
System Statistics
For purposes of this FPR, each Bigfoot Forestry Business may be referred to as an "outlet." As of December 31, 2024 (the last day of the Measuring Year) there were: (a) 2 Franchised Outlets in operation, neither of which is a Qualifying Outlet; and (b) 1 Company-Owned Outlet in operation (which is the only Qualifying Outlet). The table below summarizes the outlet statistics and the number of Qualifying Outlets:
| 2024 Outlet Statistics | | | | | | |---|---|---|---|---|---| | Outlet Type | | Statistics for 2024 | | | | | | | Open Jan 1, 2024 | Opened | Closed | O pen Dec 31, 202 4 | | Franchised | 0 | | 2 | 0 | 2 | | Company-Owned | 1 | | 0 | 0 | 1 | | Total | 1 | | 2 | 0 | 3 | The data presented in this FPR is limited to the historical results achieved by Qualifying Outlets during the Measuring Year. We excluded date from the 2 Franchised Outlets that opened in 2024 because they were not open and operating throughout the entire Measuring Year. As a result, this FPR is limited to data from our Company-Owned Outlet.
Company-Owned Outlet Operational Details
Our Company-Owned Outlet opened in September 2020 in Rock Hill, South Carolina. During the Measuring Year, our Company-Owned Outlet utilized an average of 1.5 service teams (i.e., varied between 1 and 2 teams) running, on average, 2 pieces of equipment. It also conducted operations within an area larger than a franchisedterritory.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 36–39)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, a 'Qualifying Outlet' is defined as any Company-Owned Outlet or Franchised Outlet that meets specific criteria related to its operational status and data provision. To be considered a Qualifying Outlet, the business must have been open and operating throughout the entire Measuring Year, which in this case is defined as the period from January 1, 2024, to December 31, 2024. Additionally, the outlet must have provided Bigfoot Forestry with all the data requested to prepare the Financial Performance Representation (FPR).
This definition is important because the Financial Performance Representation presented in Item 19 is based solely on the data from these Qualifying Outlets. For the 2024 measuring year, there was only one Qualifying Outlet, which was a Company-Owned Outlet. The two Franchised Outlets that were in operation as of December 31, 2024, did not meet the criteria to be considered Qualifying Outlets. The FDD states that the franchised outlets were excluded from the financial performance representation because they were not open and operating throughout the entire measuring year.
For a prospective franchisee, this means that the financial performance data presented may not be fully representative of a typical franchised operation, as it is based on a Company-Owned Outlet. It is crucial for potential franchisees to understand the specific operational details and circumstances of the Qualifying Outlet, as outlined in the FDD, to assess the relevance of the financial data to their own potential business. The FDD notes that the Company-Owned Outlet performed jobs at sites located anywhere within a reasonable distance from the equipment storage site, similar to the manner in which Bigfoot Forestry may authorize franchisees to conduct extraterritorial operations within "Approved Open Territories".
Given that the FPR is based on a single Company-Owned Outlet, prospective franchisees should carefully consider the factors that may differentiate their potential performance from that of the Company-Owned Outlet. They should also seek additional information and clarification from Bigfoot Forestry regarding the performance of Franchised Outlets and the factors that contribute to their success. Understanding these nuances is essential for making an informed investment decision.