What expenses are excluded from the EBITDA and Adjusted EBITDA calculations for Bigfoot Forestry?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the company provides a definition of "Excluded Expenses" for the purposes of calculating EBITDA and Adjusted EBITDA. These excluded expenses consist of: amortization, depreciation, donations, income taxes, interest paid on debt, and owner draws, benefits, and personal expenses. These items are not factored into either the EBITDA or Adjusted EBITDA calculations, offering a clearer view of operational profitability.

For a prospective Bigfoot Forestry franchisee, understanding these exclusions is crucial for interpreting the financial performance representations in Item 19. By excluding these expenses, the franchisor aims to present a standardized view of profitability that focuses on core operational factors. This allows potential franchisees to better assess the underlying earning potential of a Bigfoot Forestry franchise, without the distortion of items like owner compensation or debt-related costs.

It is important to note that while these expenses are excluded from EBITDA and Adjusted EBITDA, they are still real costs that a franchisee will incur. Therefore, a thorough business plan should account for these items when projecting overall financial performance. Understanding the distinction between these profitability metrics and actual cash flow is essential for making informed investment decisions regarding a Bigfoot Forestry franchise.