When is the Cooperative Advertising Fee due for a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
age-11-0">ITEM 6 OTHER FEES
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the Cooperative Advertising Fee is due at the same time as the royalty fee. The royalty fee is due on the 10th day of the month. Therefore, the Cooperative Advertising Fee is also due on the 10th day of the month.
The Cooperative Advertising Fee can be up to 2% of Gross Sales. This fee is used for cooperative advertising efforts, and company-owned outlets have the same voting power as franchised outlets in the cooperative. However, if a majority of outlets are company-owned, Bigfoot Forestry will not increase the fee unless a majority of franchised outlets vote in favor of the increase.
It's important to note that the Cooperative Advertising Fees are credited against the Local Marketing Commitment. The Local Marketing Commitment is the greater of 2% of Gross Sales or $1,000 per month, which a franchisee must spend to advertise their Bigfoot Forestry business in their local market. Understanding how these fees interact is crucial for managing marketing expenses as a franchisee.