How is the minimum local advertising expenditure determined for a Bigfoot Forestry franchise?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the minimum local advertising expenditure for a franchisee is determined by comparing two figures: a fixed monthly amount and a percentage of gross sales. The franchisee is obligated to spend whichever amount is greater.

Specifically, the FDD states that the Company-Owned Outlet would have been obligated to spend a minimum of $14,764 on local advertising during the Measuring Year if it were a Franchised Outlet. This amount is determined as the greater of $1,000 per month ($12,000 per year) or 2% of Gross Sales ($14,764). In this example, 2% of gross sales exceeded the fixed monthly amount, so the higher figure was used as the minimum advertising expenditure.

This means a prospective Bigfoot Forestry franchisee needs to budget for local advertising expenses, ensuring they allocate at least $1,000 per month or 2% of their gross sales, whichever is higher. This local marketing commitment is a crucial factor in the franchisee's financial planning and operational strategy. The franchisor's Company-Owned Outlet spent $15,697 on local advertising, exceeding the minimum requirement, which suggests that exceeding the minimum may be beneficial for business growth.