What forms of variable consideration are included in Bigfoot Forestry franchise agreements?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
You must sign the Initial Franchise Agreement for your first (1st) Bigfoot Forestry Business at the time you sign this Agreement. Each Franchise Agreement shall be our then-current form of Bigfoot Forestry Franchise Agreement, the terms of which may vary materially and substantially from the terms of the Initial Franchise Agreement; provided, however, that the initial franchise fee imposed under each Franchise Agreement shall be determined in accordance with the table set forth in Part B of ATTACHMENT "A". Your payment of the development fee pursuant to §5 shall be deemed to include and satisfy the initial franchise fee imposed under each Franchise Agreement you sign pursuant to this Agreement. Unless we agree otherwise, you may not provide Bigfoot Forestry Services in a given Franchised Territory before the parties sign a Franchise Agreement for that Franchised Territory. You must develop, open and operate each Bigfoot Forestry Business in compliance with the Franchise Agreement and the Manual.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Bigfoot Forestry franchise agreement includes variable consideration in the form of royalty fees, which are a percentage of gross revenue. Specifically, franchisees must pay Bigfoot Franchising, LLC a royalty fee equal to 6% of the Gross Revenue they earn. This fee is subject to change, as the Franchise Agreement each franchisee signs will be the then-current form, the terms of which may vary materially and substantially from the terms of the Initial Franchise Agreement.
In addition to royalty fees, Bigfoot Forestry franchisees are required to contribute to a marketing fund. Franchisees must pay a marketing fund contribution equal to 2% of Gross Revenue. This contribution supports marketing and advertising efforts to promote the Bigfoot Forestry brand and services.
The royalty and marketing fund contributions are ongoing, variable expenses that franchisees must factor into their financial projections. These fees directly correlate with revenue, meaning higher sales volume results in increased royalty and marketing fund payments. Prospective franchisees should carefully consider the impact of these variable costs on their overall profitability and cash flow.