What is excluded from the definition of 'Gross Sales' for a Bigfoot Forestry franchise?

According to the 2025 Bigfoot Forestry Franchise Disclosure Document, 'Gross Sales' are defined as all gross sums billed or collected from goods and services sold, plus all other sums collected from the business's operation. This includes advertising revenues, sponsorship fees, and business interruption insurance proceeds. However, certain items are specifically excluded from the calculation of Gross Sales.

Specifically, the calculation of Gross Sales for a Bigfoot Forestry franchise excludes (a) sales or use taxes, meaning that franchisees do not need to include these taxes when calculating their gross sales for royalty or other fee purposes. It also excludes (b) customer refunds, which means that if a customer receives a refund, that amount is deducted from the gross sales figure. Finally, it excludes (c) revenues from the sale of equipment in the ordinary course of business, indicating that revenue generated from selling equipment is not considered part of the gross sales calculation.

Understanding what constitutes Gross Sales is crucial for Bigfoot Forestry franchisees because many fees, such as the royalty fee and brand fund fee, are calculated as a percentage of Gross Sales. Knowing what is included and excluded ensures accurate reporting and payment of these fees. The royalty fee ranges from 7.0% to 4.5% of Gross Sales depending on the bracket, and the brand fund fee is up to 3% of Gross Sales (currently 1%).