What defines a 'Franchised Outlet' for Bigfoot Forestry?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, a 'Franchised Outlet' is defined as any Bigfoot Forestry Business owned by a franchisee. This definition is important because the FDD uses the term 'Franchised Outlet' in the Item 19 financial performance representation to distinguish between franchisee-owned businesses and company-owned businesses. This distinction is crucial for prospective franchisees to understand the different financial obligations and performance metrics associated with each type of outlet.

Specifically, the FDD presents financial data for a Company-Owned Outlet and, for illustrative purposes, calculates an 'Adjusted EBITDA' that takes into account the imputed fees and costs that a Franchised Outlet would incur but that the Company-Owned Outlet does not. These imputed fees and costs include brand fund fees, local marketing commitment expenses, royalty fees, and technology fees. By understanding the definition of 'Franchised Outlet,' prospective franchisees can better assess the financial performance representation and understand how their own financial results might differ from those of the Company-Owned Outlet.

For example, the Company-Owned Outlet did not pay brand fund fees (1% of Gross Sales), royalty fees (4.5% to 7% of Gross Sales depending on Gross Sales bracket), or technology fees ($350 per month). It also wasn't required to spend a minimum monthly amount on local marketing equal to or greater than the Local Marketing Commitment (the greater of 2% of monthly Gross Sales or $1,000 per month). These differences highlight the importance of understanding the distinction between a Franchised Outlet and a Company-Owned Outlet when reviewing the financial performance representation.