What costs are included in 'COGS' or 'Cost of Goods Sold' for a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- "COGS" or "Cost of Goods Sold" includes variable costs that are directly associated with the provision and delivery of Bigfoot Forestry Services, including any materials necessary for completion of a project. COGS does not include Fuel Costs or Labor Costs which are included under Operating Expenses. In most cases, Bigfoot Forestry Businesses do not incur any COGS (other than Fuel Costs and Labor Costs where are listed as separate line items under Operating Expenses).
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 36–39)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, COGS, or Cost of Goods Sold, includes variable costs directly associated with providing and delivering Bigfoot Forestry services. This includes any materials necessary for completing a project. However, COGS does not include fuel costs or labor costs, as these are listed under Operating Expenses.
In most cases, Bigfoot Forestry businesses do not incur any COGS other than fuel and labor costs, which are specifically listed as separate line items under Operating Expenses. This suggests that the primary costs for a franchisee will be related to running the business (fuel and labor) rather than the direct cost of goods sold.
The financial performance representation for the company-owned outlet shows that COGS was $4,170, representing 0.6% of gross sales. This relatively low percentage indicates that material costs are a minor expense compared to other operating costs like labor ($239,810) and fuel ($40,941). Prospective franchisees should focus on managing these larger operating expenses to maximize profitability.