Does a Bigfoot Forestry franchisee have any control over the administration of the Brand Fund?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | 2, 3 AMOUNT | DUE DATE | REMARKS | |
|---|---|---|---|---|
| Greater of percentage-based royalty fee (7.0% - 4.5% of Gross Sales depending on | The minimum after signing the Franchise have not opened). The minimum monthly is (a) $500 for signing and (b) $750 within higher monthly Gross Sales brackets: | royalty fee begins the 4th full month Agreement (even if you royalty fee the 4th, 5th & 6th full months after for the rest of the term. We use the following sliding scale royalty structure with a decreasing royalty rate applied to Gross Sales | ||
| Royalty Fee | bracket) or the minimum | 10th day of month | Royalty Rate | Gross Sales Bracket |
| monthly royalty fee | 7.0% 6.5% 6.0% 5.0% 4.5% You must send | $0-$50,000 $50,000.01-$75,000 $75,000.01-$100,000 $100,000.01-$125,000 $125,000.01+ us monthly Gross Sales reports. | ||
| Brand Fund Fee | Up to 3% of Gross Sales (currently 1% of Gross Sales) | Same as royalty fee | We deposit this fee into a Brand Fund. You have no voting rights pertaining to the administration of the Brand Fund, the creation or placement of advertising, or the amount of the brand fund fee. | |
| Local Marketing Commitment | Greater of 2% of Gross Sales or $1,000 per month | Monthly, as incurred | This is the minimum amount you must spend to advertise your Business in your local market (the "Local Marketing Commitment"). This amount is in addition to your brand fund fee. The $475 monthly fee you pay our designated SEO company is credited towards your Local Marketing Commitment. |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees have no voting rights regarding the Brand Fund's administration. The Brand Fund is used to promote public recognition of the Bigfoot Forestry brand and improve its system. Franchisees are required to pay a Brand Fund Fee of up to 3% of Gross Sales; currently, this fee is set at 1% of Gross Sales, payable on the same schedule as royalty fees.
This means that while franchisees contribute to the Brand Fund, Bigfoot Forestry retains full control over how the funds are spent. Franchisees cannot influence decisions about advertising creation, placement, or the amount of the Brand Fund fee itself. This arrangement is common in franchising, where the franchisor typically manages brand-related activities to ensure consistency and protect the brand's image.
However, Bigfoot Forestry franchisees do have some influence over cooperative advertising. Company-owned outlets and franchised outlets have equal voting power within the cooperative. If a majority of outlets are company-owned, Bigfoot Forestry will not increase the cooperative advertising fee unless a majority of franchised outlets vote in favor of the increase. Cooperative advertising fees are credited against the Local Marketing Commitment, providing a degree of local marketing control for franchisees.