What options does Bigfoot Forestry have for administering the advertising cooperative?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, establish regional advertising cooperatives for purposes of pooling advertising funds to be used in discrete regions. We will determine the boundaries of the cooperative. In most instances, the boundaries will coincide with zip codes, designated marketing areas or municipal boundaries. We will specify the manner in which the cooperative is organized and governed. We may choose between: (a) administering the cooperative ourselves; or (b) establishing an advertising council, comprised by the cooperative's members, to administer the cooperative. We may require that the cooperative be administered in accordance with written bylaws, organizational documents or other governing documents that we approve. There were no advertising cooperatives in effect as of December 31, 2024.
If your Business is located in a region subject to an advertising cooperative you must: (a) participate in the cooperative according to its rules and procedures and abide by its decisions; and (b) pay a cooperative advertising fee. We may set the minimum cooperative advertising fee or we may allow the cooperative to set the fee based on majority vote of its members. In either case, the fee will not exceed 2% of Gross Sales. All cooperative advertising fees you pay are credited against your Local Marketing Commitment. Any companyowned Bigfoot Forestry Business located in the cooperative will contribute on the same basis as franchisees.
Advertising cooperatives are not required to prepare annual or periodic financial statements. Any financial statements that are prepared will be made available to you upon request. We reserve the right to form, change, merge or terminate advertising cooperatives at any time.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the company may establish regional advertising cooperatives to pool advertising funds for specific regions. The boundaries of these cooperatives are determined by Bigfoot Forestry and may coincide with zip codes, designated marketing areas, or municipal boundaries.
Bigfoot Forestry has the option to administer the cooperative itself or establish an advertising council comprised of the cooperative's members to handle the administration. The company may also require that the cooperative be administered according to written bylaws, organizational documents, or other governing documents that Bigfoot Forestry approves. As of December 31, 2024, there were no advertising cooperatives in effect.
If a franchisee's Bigfoot Forestry Business is located in a region subject to an advertising cooperative, they must participate in the cooperative according to its rules and procedures and pay a cooperative advertising fee. Bigfoot Forestry may set the minimum cooperative advertising fee, or the cooperative members may set the fee by a majority vote. However, the fee will not exceed 2% of Gross Sales, and all cooperative advertising fees paid are credited against the franchisee's Local Marketing Commitment. Company-owned Bigfoot Forestry Businesses contribute to the advertising cooperative on the same basis as franchisees.
Advertising cooperatives are not required to prepare annual or periodic financial statements, but any financial statements that are prepared will be made available to franchisees upon request. Bigfoot Forestry reserves the right to form, change, merge, or terminate advertising cooperatives at any time.