What happens if there is a surplus 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.
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 the 2025 Bigfoot Forestry FDD, any 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. Furthermore, any surplus of monies may be invested, and Bigfoot Forestry may lend money if there is a deficit.
This means that if the Brand Fund has a surplus at the end of the year, those funds will not be distributed back to franchisees. Instead, they will be used in the next fiscal year to further promote the Bigfoot Forestry brand and improve the system. The franchisor also retains the right to invest any surplus funds.
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. Bigfoot Forestry also has the right to discontinue the Brand Fund with 30 days' notice. An unaudited financial accounting of Brand Fund contributions and expenditures will be prepared annually and made available upon request.