Why are there no provisions for income taxes included in the financial statements for Bigfoot Forestry?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the company's financial statements do not include a provision for income taxes. This is because Bigfoot Franchising, LLC is structured as a limited liability company (LLC). As an LLC, the company's taxable income or loss is allocated to its members based on their respective ownership percentages. Therefore, the company itself does not pay income taxes directly; instead, the tax liability passes through to the individual members, who report their share of the company's income or loss on their personal tax returns.

For a prospective Bigfoot Forestry franchisee, this information is relevant because it clarifies the tax structure of the franchising entity. It means that Bigfoot Franchising, LLC, as the franchisor, does not pay corporate income taxes. This structure is common for smaller businesses and franchises, as it simplifies tax reporting at the company level.

However, this detail in the FDD pertains specifically to the franchisor, Bigfoot Franchising, LLC. It does not describe the tax obligations of individual franchisees. As such, prospective franchisees should consult with a tax professional to understand their own tax liabilities and obligations as owners of a Bigfoot Forestry franchise. Franchisees will be responsible for paying income taxes on their profits, as well as other applicable taxes such as sales tax or self-employment tax.