If Bigfoot Forestry purchases items in bulk and resells them to me, how is the markup determined?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
Negotiate purchase agreements with suppliers to obtain favorable pricing. We may also purchase items in bulk and resell them to you at our cost plus shipping and a reasonable markup.
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 Franchise Disclosure Document, Bigfoot Forestry may purchase items in bulk and resell them to franchisees. If Bigfoot Forestry does so, the price to the franchisee will be Bigfoot Forestry's cost plus shipping and a reasonable markup.
This arrangement could benefit franchisees by providing access to potentially lower prices through bulk purchasing. However, the FDD does not specify how the 'reasonable markup' is calculated. This lack of clarity could create uncertainty for franchisees, as the markup could vary significantly.
Prospective franchisees should inquire about the typical markup percentage or the factors that determine the markup. Understanding how Bigfoot Forestry determines this markup is crucial for franchisees to accurately forecast their costs and profitability.