How is 'Gross Profit' calculated for a Bigfoot Forestry business?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Profit" means the financial performance metric calculated as Gross Sales minus COGS.
"Gross Sales" means total revenue generated by the Qualifying Outlet minus: (a) taxes; and (b) refunds.
"COGS" or "Cost of Goods Sold" includes variable costs that are directly associated with the provision and delivery of Bigfoot Forestry Services, including any materials necessary for completion of a project. COGS does not include Fuel Costs or Labor Costs which are included under Operating Expenses. In most cases, Bigfoot Forestry Businesses do not incur any COGS (other than Fuel Costs and Labor Costs where are listed as separate line items under Operating Expenses).
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 36–39)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, Gross Profit is calculated by subtracting the Cost of Goods Sold (COGS) from Gross Sales. Gross Sales is defined as the total revenue generated by a Qualifying Outlet, minus taxes and refunds. COGS includes variable costs directly associated with providing Bigfoot Forestry services, including materials needed for project completion, but excludes fuel and labor costs, which are categorized under Operating Expenses. In most cases, Bigfoot Forestry businesses do not incur any COGS other than fuel and labor costs, as these are listed separately under Operating Expenses.
Based on the financial performance representation for the one Company-Owned Outlet, Gross Sales were $738,204 and COGS were $4,170, resulting in a Gross Profit of $734,034. This represents 99.4% of Gross Sales. It's important to note that this data is from a single Company-Owned Outlet and may not be representative of franchised locations. The FDD emphasizes that individual results may vary, and there is no assurance that franchisees will achieve similar financial performance.
Prospective franchisees should carefully consider the components of Gross Sales and COGS, understanding what costs are included and excluded. Given that fuel and labor are significant expenses categorized separately, franchisees should develop detailed projections for these costs to accurately estimate their potential Gross Profit. Additionally, understanding the factors that influence Gross Sales, such as market demand and pricing strategies, is crucial for financial planning. Franchisees should also inquire about the typical COGS for franchised locations to better understand potential profitability.