Does the Bigfoot Forestry FDD include a statement of retained earnings?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
Bigfoot Franchising, LLC
Metwally CPA PLLG Bedford, Texas June 17, 2024
Bigfoot Franchising, LLC Notes to Financial Statement December 31, 2023
1. COMPANY AND DESCRIPTION OF BUSINESS
Bigfoot Franchising, LLC (the "Company") was established in the state of South Carolina on July 12, 2022, for the purpose of offering franchise opportunities to entrepreneurs who want to own and operate their business as a franchise. The Company provides the qualified individual with the rights to operate a business that provides professional and reliable service for land-clearing and forestry mulching needs under the "Bigfoot" mark. The Company offers individual unit franchises and area development franchises for the development of multiple units within a designated territory.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
This summary of significant accounting policies is presented to assist the reader in understanding and evaluating the Company's financial statement. The financial statement and notes are representations of the Company's management, which is responsible for their integrity and objectivity. These accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statement.
A. Basis of Accounting
The financial statement was prepared in conformity with accounting principles generally accepted in the United State of America ("US GAAP").
B. Cash and Cash Equivalents
The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.
C. Federal Income Taxes
As a limited liability company, the Company's taxable income or loss is allocated to members in accordance with their respective percentage ownership. Therefore, no provision for income taxes has been included in the financial statements.
D. Use of Estimates
The preparation of our Company's financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of our financial statements and the reported amounts of revenues, costs and expenses during the reporting period. Actual results could differ significantly from those estimates. It is at least reasonably possible that a change in the estimates will occur in the near term.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 41)
What This Means (2025 FDD)
Based on the 2025 Bigfoot Forestry FDD excerpts, it is not possible to determine whether a statement of retained earnings is included. While Item 23 includes financial statements and notes, the excerpts do not specifically mention a statement of retained earnings. The notes to the financial statements do describe the company's accounting policies, basis of accounting, and treatment of cash equivalents, among other items. These policies conform to generally accepted accounting principles. The excerpts also include a summary of significant accounting policies, which is presented to assist the reader in understanding and evaluating the company's financial statements. However, the specific financial statements included are not detailed. Item 19 defines financial terms such as Adjusted EBITDA, COGS, and EBITDA, which are used in financial performance representations. However, this does not provide information on whether a statement of retained earnings is included in the FDD. To confirm whether the Bigfoot Forestry FDD includes a statement of retained earnings, a prospective franchisee should review the full Item 21, 'Financial Statements,' in its entirety and/or ask the franchisor directly.