How are 'Gross Sales' defined for a Qualifying Outlet of a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Sales" means total revenue generated by the Qualifying Outlet minus: (a) taxes; and (b) refunds.
"Qualifying Outlet" means any Company-Owned Outlet or Franchised Outlet that was open and operating throughout the entire Measuring Year and provided us with all data we requested to prepare the FPR.
"Measuring Year" means the period of time beginning January 1, 2024 and ending December 31, 2024.
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 Sales' for a Qualifying Outlet is defined as the total revenue generated by the outlet, minus taxes and refunds. A 'Qualifying Outlet' is a Company-Owned Outlet or Franchised Outlet that was open and operating for the entire Measuring Year (January 1, 2024, to December 31, 2024) and provided all requested data to prepare the Financial Performance Representation (FPR).
Understanding the definition of Gross Sales is crucial for a prospective Bigfoot Forestry franchisee because it serves as the basis for calculating various fees and financial metrics. For example, Brand Fund Fees are 1% of Gross Sales, and royalty fees are calculated on a sliding scale based on Gross Sales brackets. Additionally, the Local Marketing Commitment is determined as the greater of $1,000 per month or 2% of Gross Sales. Therefore, accurately tracking and reporting Gross Sales is essential for compliance and financial planning.
The Financial Performance Representation in Item 19 of the Bigfoot Forestry FDD relies on data from a 'Qualifying Outlet,' which must be open and operating for the entire 'Measuring Year' and provide all requested data. For 2024, the Measuring Year ran from January 1 to December 31. It is important to note that for the 2024 reporting year, only the Company-Owned Outlet met the criteria to be a Qualifying Outlet, as the two Franchised Outlets did not operate for the entire year. This means that the financial performance data presented is based solely on the Company-Owned Outlet's performance.
Prospective franchisees should pay close attention to how Gross Sales are calculated, as this figure directly impacts their royalty and marketing obligations. They should also inquire about the methods and systems Bigfoot Forestry uses to track and verify Gross Sales to ensure accurate reporting and avoid potential disputes. Understanding these definitions and their implications is a key part of evaluating the financial viability of a Bigfoot Forestry franchise.