Does Bigfoot Forestry have fiduciary obligations to franchisees with respect to the Brand Fund?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the Brand Fund is not a trust, and Bigfoot Forestry explicitly states that it has no fiduciary obligations to franchisees regarding the administration of the Brand Fund. This means that Bigfoot Forestry has considerable discretion in how the Brand Fund is managed and spent, without the legal responsibilities of a trustee to act in the best financial interests of the franchisees.

This lack of fiduciary duty has significant implications for prospective franchisees. While Bigfoot Forestry outlines various potential uses for the Brand Fund, such as advertising, marketing, and system improvements, the company has complete control over these expenditures. Franchisees contribute a percentage of their gross sales to this fund (currently 1%, but not to exceed 3%), but they do not have a guaranteed say in how the money is spent.

Bigfoot Forestry provides an annual unaudited financial accounting of Brand Fund contributions and expenditures, which is available to franchisees upon request. However, the absence of fiduciary responsibility means that franchisees have limited recourse if they disagree with how the funds are being used, as long as Bigfoot Forestry acts within the broad parameters defined in the franchise agreement. Furthermore, Bigfoot Forestry reserves the right to discontinue the Brand Fund with only 30 days' notice, adding another layer of uncertainty for franchisees contributing to the fund.