How much notice will Bigfoot Forestry provide before increasing the brand fund fee?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
10.1. Brand Fund. We will establish and administer a brand and system development fund to promote public awareness of our brand and improve our System. On each royalty fee due date, you must pay us a brand fund fee in the amount we designate from time to time (currently 1% of Gross Sales, but not to exceed 3% of Gross Sales). We will provide at least 60 days' notice before we increase the brand fund fee. We may use the fund to pay for any of the following in our sole discretion:
- (a) developing, administering or distributing advertising and marketing materials and programs;
- (b) conducting and administering promotions, contests or giveaways;
- (c) public and consumer relations and publicity;
- (d) brand development;
- (e) sponsorships and charitable and non-profit donations and events;
- (f) research and development of technology, products and services;
- (g) website development and search engine optimization;
- (h) development, maintenance and promotion of an ecommerce platform;
- (i) development and implementation of quality control programs and customer satisfaction surveys;
- (j) conducting market research;
- (k) changes and improvements to the System;
- (l) reimbursing us for costs we incur to host franchisee conferences;
- (m) fees and expenses charged by advertising agencies we engage to provide marketing services;
- (n) collecting and accounting for brand fund fees and preparing financial accountings of the fund;
- (o) any other programs or activities we deem appropriate to promote or improve the System; and
- (p) direct or indirect labor, administrative, overhead and other expenses incurred by us and/or our affiliates relating to any of these activities, including salary, benefits and other compensation of any of our (and any of our affiliate's) officers, employees or independent contractors based on time spent working on any brand fund matters described above.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the company will provide at least 60 days' notice before increasing the brand fund fee. Currently, the brand fund fee is 1% of Gross Sales, but it can be increased up to a maximum of 3% of Gross Sales.
This advance notice allows franchisees time to adjust their financial planning and business strategies in anticipation of the increased fee. It is important for prospective franchisees to understand that while the initial fee is 1%, Bigfoot Forestry retains the right to increase it up to 3%, which could significantly impact a franchisee's profitability.
The brand fund is used at Bigfoot Forestry's discretion for various activities, including advertising, marketing, research and development, and system improvements. The funds can also cover the franchisor's labor, administrative, and overhead expenses related to these activities. Franchisees should be aware that the franchisor has broad authority over how the brand fund is used and is not obligated to ensure that expenditures benefit franchisees in proportion to their contributions.