What happens if there is a deficit of monies in the Bigfoot Forestry Brand Fund?
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.
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, the company may lend money to the Brand Fund if there is a deficit. The Brand Fund collects fees from franchisees, currently at 1% of gross sales, but not exceeding 3%. These funds are used to promote the brand and improve the Bigfoot Forestry system through various marketing and development activities.
Any surplus funds remaining from a fiscal year will be used in the subsequent fiscal year. An accounting of the Brand Fund's contributions and expenditures is prepared annually and available to franchisees upon request. However, the FDD states that Bigfoot Forestry is not obligated to expend its own funds for marketing activities in a franchisee's area, except as stated in the document.
It is important to note that the Brand Fund is not a trust, and Bigfoot Forestry has no fiduciary obligations to franchisees regarding its administration. The company retains complete control and discretion over all advertising programs paid for by the Brand Fund. Bigfoot Forestry also reserves the right to discontinue the Brand Fund with 30 days' notice.