factual

What fees and costs are included in 'Imputed Fees & Costs' for a Bigfoot Forestry franchise?

Bigfoot_Forestry Franchise · 2025 FDD

Answer from 2025 FDD Document

Gross Sales*" means total revenue generated by the Qualifying Outlet minus: (a) taxes; and (b) refunds.

  • "Imputed Fees & Costs" includes: (a) Brand Fund Fees (1% of Gross Sales); (b) the difference between the Local Marketing Commitment (what franchisees must spend on local marketing) and the actual marketing expenses incurred by the Qualifying Outlet; (c) Royalty Fees (calculated according to a sliding royalty scale based on Gross Sales bracket, as further described in Item 6); and (d) technology fees ($350 per month). Imputed Fees & Costs are intended to capture the additi

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 36–39)

What This Means (2025 FDD)

According to the 2025 Bigfoot Forestry Franchise Disclosure Document, 'Imputed Fees & Costs' include several components that a franchisee would typically incur. These are costs that the company-owned outlet does not directly pay but are calculated to provide a more accurate comparison of financial performance.

The first component is the Brand Fund Fee, which is 1% of Gross Sales. Next is the difference between the Local Marketing Commitment, which is what franchisees must spend on local marketing, and the actual marketing expenses incurred by the outlet. Royalty Fees are also included, calculated on a sliding scale based on Gross Sales, as detailed in Item 6 of the FDD. Finally, there are technology fees amounting to $350 per month.

These imputed fees and costs are designed to reflect the additional financial obligations that a franchised outlet would have compared to a company-owned outlet. By including these costs in the financial performance representation, Bigfoot Forestry aims to provide prospective franchisees with a more realistic view of potential earnings, taking into account all required fees and expenses. It is important for potential franchisees to carefully review Item 6 for the specifics of the royalty fee calculation and to understand the local marketing requirements to accurately assess their potential financial performance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.