What was the EBITDA for the company-owned Bigfoot Forestry outlet during the Measuring Year?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 Financial Performance Representation - 1 Company-Owned Outlet | |||
|---|---|---|---|
| Financial Performance Metric | |||
| GROSS SALES | $738,204 | 100% | |
| COGS | $4,170 | 0.6% | |
| GROSS PROFIT | $734,034 | 99.4% | |
| OPERATING EXPENSES | Actual Marketing | $15,697 | 2.1% |
| Administrative | $10,125 | 1.4% | |
| Equipment Maintenance/Repairs | $10,886 | 1.5% | |
| Fuel | $40,941 | 5.5% | |
| Insurance | $15,211 | 2.1% | |
| Labor | $239,810 | 32.5% | |
| Occupancy | $12,360 | 1.7% | |
| Total | $345,030 | 46.7% | |
| EBITDA | $389,004 | 52.7% | |
| IMPUTED FEES & COSTS | Brand Fund Fees | $7,382 | 1.0% |
| Imputed Marketing | $0 | 0.0% | |
| Royalty Fees | $44,945 | 6.1% | |
| Technology Fees | $0 | 0.0% | |
| Total | $52,327 | 7.1% | |
| ADJUSTED EBITDA | $336,677 | 45.6% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 36–39)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the EBITDA for the company-owned outlet during the Measuring Year (January 1, 2024 to December 31, 2024) was $389,004. This figure represents 52.7% of gross sales. EBITDA is defined as Gross Profit minus Operating Expenses. Gross Profit is calculated as Gross Sales minus COGS (Cost of Goods Sold). Operating Expenses include actual marketing, administrative costs, equipment maintenance/repairs, fuel, insurance, labor, and occupancy costs.
It is important to note that this EBITDA is based on the actual expenses incurred by the company-owned outlet and does not account for imputed fees and costs that a franchisee would typically incur. The document also presents an "Adjusted EBITDA" figure of $336,677, which takes into account imputed fees and costs such as brand fund fees, imputed marketing expenses, royalty fees, and technology fees that a franchisee would have to pay.
The FDD emphasizes that individual results may differ, and there is no assurance that a franchisee will earn as much as the company-owned outlet. The financial performance representation is based on the historical results achieved by the qualifying outlet during the Measuring Year, which excludes data from the two franchised outlets that opened in 2024 because they were not open and operating throughout the entire Measuring Year. The company-owned outlet opened in September 2020 in Rock Hill, South Carolina, and operated with an average of 1.5 service teams using, on average, 2 pieces of equipment, within an area larger than a typical franchised territory.
Prospective franchisees should carefully review the definitions of the financial terms used in the FDD, such as EBITDA, Gross Profit, and Operating Expenses, to fully understand the financial performance representation. They should also consider the imputed fees and costs that are not reflected in the company-owned outlet's EBITDA but would be applicable to a franchised business. Additionally, they should request written substantiation for the financial performance representation to further validate the data presented.