What is included in the definition of 'Gross Sales' for a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Gross Sales" means all gross sums you bill or collect from all goods and services you sell, plus all other sums you collect from the operation of your Business, including any advertising revenues, sponsorship fees and business interruption insurance proceeds.
Gross Sales excludes: (a) sales or use taxes; (b) customer refunds; and (c) revenues from the sale of equipment in the ordinary course of business.
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, 'Gross Sales' encompasses all gross income that a franchisee bills or collects from the sale of goods and services. It also includes any other income collected from the operation of the Bigfoot Forestry business. This includes advertising revenues, sponsorship fees, and business interruption insurance proceeds.
However, the definition of Gross Sales for a Bigfoot Forestry franchise specifically excludes certain items. These exclusions are sales or use taxes, customer refunds, and revenues from the sale of equipment in the ordinary course of business. Therefore, franchisees do not have to pay royalties or other percentage-based fees on these excluded amounts.
Understanding what constitutes Gross Sales is crucial for a prospective Bigfoot Forestry franchisee because many fees, such as the royalty fee and the brand fund fee, are calculated as a percentage of Gross Sales. Accurately tracking and reporting Gross Sales is essential for compliance with the franchise agreement and for calculating the franchisee's financial obligations to Bigfoot Forestry.