What are the components of the transaction price in a standard Bigfoot Forestry franchise arrangement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
suant to §5 shall be deemed to include and satisfy the initial franchise fee imposed under each Franchise Agreement you sign pursuant to this Agreement. Unless we agree otherwise, you may not provide Bigfoot Forestry Services in a given Franchised Territory before the parties sign a Franchise Agreement for that Franchised Territory. You must develop, open and operate each Bigfoot Forestry Business in compliance with the Franchise Agreement and the Manual.
- 4.4. Project Manager. If you open and operate more than three (3) Bigfoot Forestry Businesses, you must hire a Project Manager to manage at least one (1) but not more than three (3) of your Bigfoot Forestry Businesses. The Managing Owner, and each Project Manager, can manage a maximum of three (3) Bigfoot Forestry Businesses. You must hire an additional Project Manager for every three (3) additional Bigfoot Forestry Businesses you open. Each Project Manager you hire must meet all criteria and conditions set forth in the most recent Franchise Agreement executed by you.
- 5. DEVELOPMENT FEE. At the time you sign this Agreement you must pay us a development fee in the amount set forth in Part B of ATTACHMENT "A", which is calculated as the aggregate sum of the initial franchise fees imposed for all Bigfoot Forestry Businesses you are required to develop pursuant to this Agreement. The development fee is fully earned and nonrefundable upon execution of this Agreement.
- 6. DEVELOPER ENTITY. You represent that Part A of ATTACHMENT "A" includes a complete and accurate list of your Owners. Upon request, you must send us a resolution of the Developer Entity authorizing the execution of this Agreement, a copy of its organizational documents and a current Certificate of Good Standing. You may form a separate Entity to enter into each Franchise Agreement provided that: (a) the Person or Persons owning the Equity Interests (and the percentage of the Equity Interests owned) in each such Entity must be the same Person or Persons owning the Equity Interests (with the same percentage of the Equity Interests owned) in the Developer Entity; and (b) each such Entity guarantees the performance of all other Entities formed under the authority of this §6. Each Owner, and the spouse of each Owner who is a natural Person, must sign a Franchise Owner Agreement.
7. TRANSFERS
- 7.1. By Us.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, the transaction price includes several components. Initially, a development fee is required when signing the Area Development Agreement. This fee is the sum of the initial franchise fees for all Bigfoot Forestry Businesses the franchisee is obligated to develop under the agreement and is fully earned and nonrefundable upon execution of the agreement.
In addition to the development fee, franchisees must purchase an Equipment Package from Bigfoot Forestry's affiliate before opening their business. The items included in this package and their associated pricing are detailed in Attachment A of the FDD. However, Bigfoot Forestry retains the right to modify the contents and pricing of the Equipment Package at any time.
Bigfoot Forestry may also negotiate purchase agreements with suppliers to secure discounted prices for franchisees. Franchisees can then purchase goods directly from these suppliers at the negotiated rates, although any rebates may be paid to Bigfoot Forestry. Additionally, Bigfoot Forestry may purchase items in bulk from suppliers and resell them to franchisees at cost, plus shipping fees and a reasonable markup. These elements collectively form the transaction price and ongoing purchasing arrangements for a Bigfoot Forestry franchise.