factual

Is Bigfoot Forestry obligated to pass through supplier rebates to Bigfoot Forestry franchisees?

Bigfoot_Forestry Franchise · 2025 FDD

Answer from 2025 FDD Document

We may, but need not, negotiate purchase agreements with suppliers to obtain discounted prices for franchisees.

We will arrange for you to be able to purchase the goods directly from the supplier at the discounted prices we negotiate (subject to any rebates the supplier pays to us).

We may also purchase certain items from suppliers in bulk and resell them to you at our cost plus shipping fees and a reasonable markup.

Source: Item 23 — RECEIPT (FDD pages 42–162)

What This Means (2025 FDD)

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, Bigfoot Forestry may negotiate purchase agreements with suppliers to obtain discounted prices for franchisees. While Bigfoot Forestry is not obligated to do so, if they do negotiate such agreements, they will arrange for franchisees to purchase goods directly from the supplier at the discounted prices. These discounted prices are subject to any rebates the supplier pays to Bigfoot Forestry.

This means that while Bigfoot Forestry seeks to provide franchisees with access to discounted prices through negotiated agreements with suppliers, the actual benefit to the franchisee may be affected by any rebates that the supplier provides to Bigfoot Forestry. The document does not explicitly state that Bigfoot Forestry is obligated to pass these rebates on to the franchisee.

Bigfoot Forestry also has the option to purchase items in bulk from suppliers and resell them to franchisees. In this case, the price to the franchisee would be Bigfoot Forestry's cost plus shipping fees and a reasonable markup. This provides an alternative mechanism for franchisees to obtain supplies, but it is subject to Bigfoot Forestry's discretion and pricing.

Therefore, a prospective franchisee should clarify with Bigfoot Forestry the specific details regarding supplier rebates and how they are handled, as the FDD does not guarantee that these rebates will be passed on to the franchisee. Understanding this aspect of the supply chain and pricing structure is crucial for assessing the potential profitability and cost management of a Bigfoot Forestry franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.