What are the primary sources of accounts receivable for Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Accounts Receivable
"Governmental Authority" means any national, provincial, state, county, local, municipal or other government, or any ministry, department, agency or subdivision thereof, whether administrative or regulatory, or any other body that exercises similar functions, including a court or taxing authority.
"Gross Sales" means the sum of all revenue and receipts derived from or invoiced in connection with the operation of your Business, whether in the form of cash, check, credit card, debit card, barter, exchange or other credit transaction, including amounts invoiced but not collected. Without limiting the generality of the foregoing, Gross Sales includes: (a) revenue from the sale of Bigfoot Forestry Services; (b) revenue from the sale of merchandise, retail items, products or supplies that we authorize or that reference the Marks or in any way relate to your Business; and (c) revenue and other monies that are collected or invoiced from any other source and for any purpose and that in any way relate to your Business, including, without limitation, advertising revenue, sponsorship fees and business interruption insurance proceeds. Gross Sales excludes: (a) sales or use taxes you pay to a Governmental Authority; (b) revenue you collect from a customer and later refund to that customer in a bona fide refund transaction; and (c) revenue derived from the sale of equipment in the ordinary course of business.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, the company's financial statements are prepared in conformity with generally accepted accounting principles in the United States of America (GAAP). The FDD defines 'Gross Sales' as the sum of all revenue and receipts derived from the operation of your business, whether in the form of cash, check, credit card, debit card, barter, exchange, or other credit transaction, including amounts invoiced but not collected. This indicates that invoiced amounts, even if not yet collected, are included in gross sales and could be a source of accounts receivable.
Specifically, gross sales include revenue from the sale of Bigfoot Forestry Services, merchandise, retail items, products, or supplies that the company authorizes or that reference the brand's marks, or in any way relate to the business. Additionally, any other monies collected or invoiced from any source related to the business, such as advertising revenue, sponsorship fees, and business interruption insurance proceeds, are also included.
However, gross sales exclude sales or use taxes paid to a Governmental Authority, revenue refunded to a customer in a bona fide refund transaction, and revenue from the sale of equipment in the ordinary course of business. Therefore, the primary sources of accounts receivable for a Bigfoot Forestry franchisee would be revenue from services rendered and authorized sales of merchandise or products, especially those amounts that have been invoiced but not yet collected.