What is the minimum monthly royalty fee for Bigfoot Forestry if the franchisee has not opened?
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. |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees are subject to a minimum monthly royalty fee even if their location has not yet opened. The minimum monthly royalty fee begins the 4th full month after signing the Franchise Agreement. The minimum monthly royalty fee is (a) $500 for the 4th, 5th, and 6th full months after signing and (b) $750 thereafter for the rest of the term.
This means that a new Bigfoot Forestry franchisee will need to budget for these royalty payments starting a few months after signing the agreement, regardless of whether they are generating revenue. This is to ensure that Bigfoot Forestry receives some compensation during the initial setup phase.
It's important for prospective franchisees to factor these pre-opening royalty fees into their initial investment and operating capital calculations. Franchisees should confirm with Bigfoot Forestry when the royalty payments are due and payable, and what the acceptable methods of payment are.