What expenses are specifically excluded from 'Excluded Expenses' when calculating financial performance for a Bigfoot Forestry franchise?

According to the 2025 Bigfoot Forestry Franchise Disclosure Document, when calculating financial performance metrics like EBITDA and Adjusted EBITDA, certain expenses are specifically excluded and categorized as 'Excluded Expenses'. These include amortization, which is the gradual reduction of a debt or the value of an asset over time. Depreciation, the decrease in the value of an asset due to wear and tear or obsolescence, is also excluded. Donations, which are contributions made to charitable organizations, are not included in these calculations. Income taxes, which are taxes levied on income, are excluded as well. Interest paid on debt, representing the cost of borrowing money, is also excluded from the financial performance calculations. Finally, owner draws, benefits, and personal expenses, which are funds taken out of the business by the owner for personal use, are also excluded from the 'Excluded Expenses' category.

These exclusions provide a standardized way to assess the core operational profitability of a Bigfoot Forestry franchise by removing items that are either non-cash expenses (like depreciation and amortization), related to financing (like interest), or represent distributions of profit to the owner (like owner draws). By excluding these expenses, the financial performance representations aim to present a clearer picture of the underlying earnings potential of the business itself.

Prospective franchisees should understand that while these 'Excluded Expenses' are not factored into EBITDA and Adjusted EBITDA, they are still real costs that the business owner will incur. For example, income taxes and debt interest are unavoidable expenses for most businesses. Similarly, the owner will need to draw funds from the business to cover their personal living expenses. Therefore, it is crucial for potential franchisees to consider these 'Excluded Expenses' when projecting their overall financial situation and determining the true profitability of a Bigfoot Forestry franchise for their specific circumstances.