What costs are included in 'COGS' or 'Cost of Goods Sold' for a Bigfoot Forestry business?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, Cost of Goods Sold (COGS) includes variable costs directly associated with providing and delivering Bigfoot Forestry services, including any materials necessary for completing a project. However, COGS does not include fuel costs or labor costs, as these are categorized under Operating Expenses. The FDD indicates that in most cases, Bigfoot Forestry businesses do not incur any COGS other than fuel costs and labor costs, which are listed as separate line items under Operating Expenses.

This definition is important for prospective franchisees as it clarifies which expenses are factored into the Gross Profit calculation (Gross Sales minus COGS) versus those considered Operating Expenses. Understanding this distinction is crucial for accurately assessing the financial performance of a Bigfoot Forestry franchise.

The 2024 financial performance representation for the one company-owned outlet lists COGS as $4,170, representing 0.6% of gross sales. This relatively low percentage suggests that the primary costs for a Bigfoot Forestry business are related to fuel and labor, which are accounted for separately under operating expenses. A potential franchisee should carefully review the items included in operating expenses to understand the full scope of costs associated with running the business.