When is the financial accounting of the Bigfoot Forestry Brand Fund prepared?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
All monies deposited into the Brand Fund that are not used in the fiscal year in which they accrue will be utilized in the following fiscal year. Any surplus of monies may be invested and we may lend money if there is a deficit. An unaudited financial accounting of Brand Fund contributions and expenditures will be prepared annually and made available to you upon request. During the fiscal year ended December 31, 2024 we did not spend any monies from the Brand Fund.
The Brand Fund is not a trust. We have no fiduciary obligations or liability to you with respect to our administration of the Brand Fund. Once established, we may discontinue the Brand Fund on 30 days' notice.
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, an unaudited financial accounting of the Brand Fund's contributions and expenditures is prepared annually. This accounting will be made available to franchisees upon request.
For a prospective franchisee, this means they can request to see how the Brand Fund, which is funded by a percentage of their gross sales (currently 1% and not to exceed 3%), is being managed and spent. This provides a level of transparency, although the accounting is unaudited, meaning it has not been verified by an independent accounting firm.
The FDD also notes that during the fiscal year ended December 31, 2024, Bigfoot Forestry did not spend any monies from the Brand Fund. This could be a point of inquiry for potential franchisees to understand the historical spending patterns and future plans for the fund. It's important to note that the Brand Fund is not a trust, and Bigfoot Forestry has no fiduciary obligations to franchisees regarding its administration. Bigfoot Forestry can also discontinue the Brand Fund with 30 days' notice.