Does Bigfoot Forestry have to establish regional advertising cooperatives?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, establish regional advertising cooperatives for purposes of pooling advertising funds to be used in discrete regions. We will determine the boundaries of the cooperative. In most instances, the boundaries will coincide with zip codes, designated marketing areas or municipal boundaries. We will specify the manner in which the cooperative is organized and governed. We may choose between: (a) administering the cooperative ourselves; or (b) establishing an advertising council, comprised by the cooperative's members, to administer the cooperative. We may require that the cooperative be administered in accordance with written bylaws, organizational documents or other governing documents that we approve. There were no advertising cooperatives in effect as of December 31, 2024.
If your Business is located in a region subject to an advertising cooperative you must: (a) participate in the cooperative according to its rules and procedures and abide by its decisions; and (b) pay a cooperative advertising fee. We may set the minimum cooperative advertising fee or we may allow the cooperative to set the fee based on majority vote of its members. In either case, the fee will not exceed 2% of Gross Sales. All cooperative advertising fees you pay are credited against your Local Marketing Commitment. Any companyowned Bigfoot Forestry Business located in the cooperative will contribute on the same basis as franchisees.
Advertising cooperatives are not required to prepare annual or periodic financial statements. Any financial statements that are prepared will be made available to you upon request. We reserve the right to form, change, merge or terminate advertising cooperatives at any time.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, Bigfoot Forestry is not required to establish regional advertising cooperatives. The FDD states that Bigfoot Forestry "may, but need not, establish regional advertising cooperatives." If Bigfoot Forestry does establish these cooperatives, they will determine the boundaries, which will typically align with zip codes, designated marketing areas, or municipal boundaries. Bigfoot Forestry also retains the right to specify how the cooperative is organized and governed, choosing between administering it themselves or establishing an advertising council comprised of the cooperative's members. As of December 31, 2024, there were no advertising cooperatives in effect.
If a franchisee's Bigfoot Forestry business is located within a region subject to an advertising cooperative, the franchisee must participate in the cooperative according to its rules and procedures and pay a cooperative advertising fee. Bigfoot Forestry may set the minimum fee or allow the cooperative to set it by a majority vote of its members, but the fee will not exceed 2% of Gross Sales. Any cooperative advertising fees paid are credited against the franchisee's Local Marketing Commitment. Company-owned Bigfoot Forestry businesses will contribute on the same basis as franchisees.
It's important to note that advertising cooperatives are not required to prepare annual or periodic financial statements, but any prepared statements will be available upon request. Bigfoot Forestry reserves the right to form, change, merge, or terminate advertising cooperatives at any time. This provides Bigfoot Forestry with significant flexibility in managing advertising strategies and resource allocation, but also means that franchisees may face changing requirements regarding participation in advertising cooperatives.