If Bigfoot Forestry establishes an advertising cooperative, what can they determine regarding its operation?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, establish regional advertising cooperatives for purposes of creating and/or purchasing advertising programs for the benefit of all Bigfoot Forestry Businesses located in the region.
We may: (a) determine the boundaries of the cooperative; (b) specify the manner in which the cooperative is organized and governed; (c) require the cooperative to be administered in accordance with written bylaws, organizational documents or other governing documents that we approve; and (d) require you to participate in the cooperative according to its rules and procedures and abide by its decisions.
You must pay a cooperative advertising fee on each royalty fee due date or such other date specified by the cooperative.
We may set the minimum cooperative advertising fee or we may allow the cooperative to set the fee based on majority vote of its members.
In either case, the fee will not exceed 2% of Gross Sales.
We may either: (a) collect
cooperative advertising fees and remit them to the cooperative; or (b) require you to pay these fees directly to the cooperative. All cooperative advertising fees you pay are credited towards your Local Marketing Commitment. We may form, change or dissolve cooperatives in our discretion.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, if the company establishes regional advertising cooperatives, they have broad discretion over the co-op's operation. Specifically, Bigfoot Forestry can determine the geographic boundaries of the cooperative, specify how it is organized and governed, and require that the cooperative operate under written bylaws or governing documents that Bigfoot Forestry approves. Furthermore, Bigfoot Forestry can mandate franchisee participation in the cooperative, requiring adherence to its rules and decisions.
Bigfoot Forestry also controls the cooperative advertising fees. They may either set the minimum fee themselves or allow the cooperative to set it through a majority vote of its members. However, in either scenario, the cooperative advertising fee cannot exceed 2% of Gross Sales. Bigfoot Forestry also retains the right to collect these fees directly from franchisees and remit them to the cooperative, or require franchisees to pay the cooperative directly. Any cooperative advertising fees paid by the franchisee will be credited towards their local marketing commitment.
This level of control gives Bigfoot Forestry significant influence over the marketing and advertising strategies of its franchisees. While franchisees may benefit from regional advertising programs, they must also adhere to Bigfoot Forestry's directives and guidelines regarding the cooperative's operation. Prospective franchisees should consider these factors when evaluating the costs and benefits of joining the Bigfoot Forestry franchise system.