What taxes are Bigfoot Forestry franchisees required to promptly pay?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
partment, 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
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees are responsible for paying sales or use taxes to a Governmental Authority. These taxes are not included in the calculation of Gross Sales, meaning that the royalty fees franchisees pay to Bigfoot Forestry are calculated before these taxes are applied.
In franchising, it is standard practice for franchisees to handle the collection and remittance of sales taxes, as these vary based on location and are directly related to the franchisee's revenue. This arrangement ensures that Bigfoot Forestry franchisees comply with local tax laws and regulations.
Prospective Bigfoot Forestry franchisees should consult with a tax professional to understand their specific obligations regarding sales and use taxes in their operating area. Understanding these tax responsibilities is a crucial aspect of managing the financial operations of a Bigfoot Forestry franchise.