Do company-owned outlets have the same voting power as franchised outlets in a Bigfoot Forestry cooperative?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | 2, 3 AMOUNT | DUE DATE | REMARKS | |
|---|---|---|---|---|
| Greater of percentage-based royalty fee (7.0% - 4.5% of Gross Sales depending on | The minimum after signing the Franchise have not opened). The minimum monthly is (a) $500 for signing and (b) $750 within higher monthly Gross Sales brackets: | royalty fee begins the 4th full month Agreement (even if you royalty fee the 4th, 5th & 6th full months after for the rest of the term. We use the following sliding scale royalty structure with a decreasing royalty rate applied to Gross Sales | ||
| Royalty Fee | bracket) or the minimum | 10th day of month | Royalty Rate | Gross Sales Bracket |
| monthly royalty fee | 7.0% 6.5% 6.0% 5.0% 4.5% You must send | $0-$50,000 $50,000.01-$75,000 $75,000.01-$100,000 $100,000.01-$125,000 $125,000.01+ us monthly Gross Sales reports. | ||
| Brand Fund Fee | Up to 3% of Gross Sales (currently 1% of Gross Sales) | Same as royalty fee | We deposit this fee into a Brand Fund. You have no voting rights pertaining to the administration of the Brand Fund, the creation or placement of advertising, or the amount of the brand fund fee. | |
| Local Marketing Commitment | Greater of 2% of Gross Sales or $1,000 per month | Monthly, as incurred | This is the minimum amount you must spend to advertise your Business in your local market (the "Local Marketing Commitment"). This amount is in addition to your brand fund fee. The $475 monthly fee you pay our designated SEO company is credited towards your Local Marketing Commitment. | |
| Cooperative Advertising Fee | Up to 2% of Gross Sales | Same as royalty fee | Company-owned outlets have the same voting power as franchised outlets in a cooperative. If a majority of outlets are company-owned, we will not increase the fee unless a majority of franchised outlets in favor of the fee increase. Cooperative advertising fees are credited against the Local Marketing Commitment. |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, company-owned outlets and franchised outlets have equal voting power within a cooperative advertising program. This means that each outlet, regardless of whether it is company-owned or franchised, has one vote on matters pertaining to the cooperative. However, if company-owned outlets constitute a majority of the total outlets, Bigfoot Forestry states that it will not increase the cooperative advertising fee unless a majority of franchised outlets also vote in favor of the increase.
This arrangement ensures that franchisees have a voice in decisions regarding cooperative advertising, particularly concerning fee increases. The provision protecting franchisees from fee increases imposed solely by company-owned stores offers a degree of protection for franchisees' financial interests. The cooperative advertising fees are credited against the Local Marketing Commitment.
For a prospective Bigfoot Forestry franchisee, this information is relevant because it clarifies the extent of their influence over cooperative advertising initiatives and costs. While company-owned stores have equal voting power, the added protection against fee increases without franchisee consent provides some assurance that their concerns will be considered. Franchisees should consider the implications of this voting structure and fee arrangement when evaluating the overall costs and benefits of investing in a Bigfoot Forestry franchise.