When is the management fee due to Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
age-11-0">ITEM 6 OTHER FEES
| 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. | |
| Cooperative Advertising Fee | Up to 2% of Gross Sales | Same as royalty fee | Company-owned outlets have the same voting power as franchised outlets in a cooperative. If a majority of outlets are company-owned, we will not increase the fee unless a majority of franchised outlets in favor of the fee increase. Cooperative advertising fees are credited against the Local Marketing Commitment. | |
| Additional Training Fee | $500 per person per day (plus Travel Expenses for onsite training) | 10 days after invoice | Payable for each person who attends: initial training after you open (e.g. new Managing Owner or Project Manager); retraining after failing a prior attempt; remedial training; or additional training you request. You must also reimburse all Travel Expenses we incur for training onsite in your territory. We do not charge for other training programs. | |
| TYPE OF FEE 1 | 2, 3 AMOUNT | DUE DATE | REMARKS | |
| ------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | |
| Conference Registration Fee | Up to $1,000 per person per conference (currently $500 per person) | 10 days after invoice | We may hold conferences to discuss matters affecting franchisees. Attendance is mandatory unless (a) we designate attendance as optional or (b) we waive your obligation to attend based on showing of good cause. If you fail to attend a required conference without a waiver, you must pay us the conference registration fee despite your failure to attend (we will provide you with a copy of any written materials distributed at the conference). | |
| Technology Fee | $350 per month for license to Microsoft 365 (including 2 email accounts) & tech support (we may increase fee by not more than 10% per year; any unapplied increase for a given year carries forward and may be applied to subsequent year) | 10th day of month or as we otherwise specify | Includes amounts you pay us or our affiliate for Technology Systems including: amounts paid for proprietary items; amounts we collect from you and remit to third-parties; and an administrative fee for managing the technology platform and negotiating/ managing relationships with third-party licensors. It does not include amounts you pay to third parties. If you need more than 2 email accounts, we charge an additional $7 per additional email account per month. | |
| Product Purchases | Varies depending on item purchased | 10 days after invoice | We and our affiliates may serve as System suppliers for goods and services you must purchase. If this occurs, we will send you a price list upon request. | |
| New Product or Supplier Testing | Cost of testing (estimated to range from $1,000 to $2,000 per test) | 10 days after invoice | This covers the costs of testing new products or inspecting new suppliers you propose. If you request that we approve equipment, we may be required to purchase the equipment for testing purposes, in which case you must reimburse us for the purchase price (which could be much higher than $2,000). | |
| Renewal Fee | $5,000 | At time you sign renewal agreement | Imposed if you renew your franchise rights by signing a renewal Franchise Agreement. | |
| Transfer Fee | [Franchise Agreement] $10,000 [ADA] $10,000 | Before Transfer | We do not charge a fee for Permitted Transfers. You pay the transfer fee for all other Transfers. If our broker finds the buyer you must also reimburse us for all commissions we pay. | |
| Reimbursement of Reinspection Costs | All Travel Expenses and other costs we incur to travel to and inspect your Bigfoot Forestry Business | 10 days after invoice | Imposed if we inspect your Business to verify that you cured a (a) health or safety issue identified by a government agency or (b) breach of system standards we brought to your attention. | |
| Audit Fee | Actual cost of audit (inc |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, there is no mention of a "management fee". However, the document does detail several other fees that a franchisee will be responsible for. These fees include a royalty fee, brand fund fee, local marketing commitment, cooperative advertising fee, additional training fee, conference registration fee, technology fee, product purchases, new product or supplier testing, renewal fee, transfer fee, reimbursement of reinspection costs and an audit fee.
The royalty fee is due on the 10th day of the month and is either a percentage-based royalty fee (ranging from 7.0% to 4.5% of Gross Sales depending on the bracket) or a minimum monthly royalty fee. The minimum monthly royalty fee is (a) $500 for the 4th, 5th & 6th full months after signing the Franchise Agreement (even if you have not opened) and (b) $750 for the rest of the term. The brand fund fee, up to 3% of Gross Sales (currently 1% of Gross Sales), and the cooperative advertising fee, up to 2% of Gross Sales, are due at the same time as the royalty fee.
Fees such as the additional training fee ($500 per person per day plus travel expenses for onsite training), conference registration fee (up to $1,000 per person per conference, currently $500), product purchases (varies depending on item purchased), new product or supplier testing (estimated to range from $1,000 to $2,000 per test), reimbursement of reinspection costs (all travel expenses and other costs incurred), and audit fee (actual cost of audit including travel expenses for audit team) are all due 10 days after the invoice. The technology fee ($350 per month for license to Microsoft 365 and tech support) is due on the 10th day of the month or as otherwise specified. The renewal fee ($5,000) is due at the time the franchisee signs the renewal agreement, and the transfer fee ($10,000 for the Franchise Agreement and $10,000 for the ADA) is due before the transfer. The local marketing commitment, which is the greater of 2% of gross sales or $1,000 per month, is due monthly as incurred.
As the FDD does not list a "management fee", a prospective franchisee should clarify with Bigfoot Forestry what fees are required and when they are due to ensure full understanding of the financial obligations involved in operating a franchise.