How often may Bigfoot Forestry implement a fee adjustment based on CPI changes?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- **13.6.
CPI Adjustments.** We may periodically adjust all fees (including minimum fees) expressed as a fixed dollar amount based on changes to the U.S.
Consumer Price Index (CPI).
We may periodically review and increase these fees based on CPI changes, but only if the then-current CPI ("Current CPI") is more than 5% higher than the corresponding CPI in effect on: (a) the Effective Date of this Agreement (for the initial fee adjustment); or (b) the date we implemented the last fee adjustment (for subsequent fee adjustments) ("Baseline CPI").
The adjusted fee is calculated by multiplying the current fee by the sum of one (1) plus a fraction: (a) the numerator of which is Current CPI minus Baseline CPI; and (b) the denominator of which is Baseline CPI.
We may utilize any CPI index series published by the U.S.
Department of Labor or any comparable Governmental Authority that we deem appropriate.
We currently use the following index: All Urban Wage Earners and Clerical Workers (CPI-W), U.S.
City Average (1982-84 = 100), "All Items".
We will notify you of any CPI adjustment at least 60 days before it becomes effective.
We may implement no more than one (1) fee adjustment during any five (5) year period.
If we decline to exercise our right to increase fees in a given five (5) year period despite a 5% or greater CPI increase, that potential fee increase will accumulate and may be carried forward and applied in connection with a subsequent fee adjustment.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the company may adjust fees based on changes to the U.S. Consumer Price Index (CPI). However, Bigfoot Forestry may only implement one fee adjustment during any five-year period.
Before Bigfoot Forestry can adjust the fees, the Current CPI must be more than 5% higher than the Baseline CPI, which is the CPI in effect on either the Effective Date of the Franchise Agreement for the initial adjustment, or the date of the last fee adjustment for subsequent adjustments. The adjusted fee is calculated by multiplying the current fee by the sum of one (1) plus a fraction. The numerator of the fraction is the Current CPI minus the Baseline CPI, and the denominator is the Baseline CPI.
Bigfoot Forestry will notify franchisees of any CPI adjustment at least 60 days before it takes effect. If Bigfoot Forestry chooses not to increase fees during a five-year period despite a qualifying CPI increase, that potential increase can be carried forward and applied to a later fee adjustment.