Is Bigfoot Forestry required to establish regional advertising cooperatives?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising Cooperative.** We may, but need not, establish regional advertising cooperatives for purposes of creating and/or purchasing advertising programs for the benefit of all Bigfoot Forestry Businesses located in the region.
We may: (a) determine the boundaries of the cooperative; (b) specify the manner in which the cooperative is organized and governed; (c) require the cooperative to be administered in accordance with written bylaws, organizational documents or other governing documents that we approve; and (d) require you to participate in the cooperative according to its rules and procedures and abide by its decisions.
You must pay a cooperative advertising fee on each royalty fee due date or such other date specified by the cooperative.
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.
We may either: (a) collect
cooperative advertising fees and remit them to the cooperative; or (b) require you to pay these fees directly to the cooperative. All cooperative advertising fees you pay are credited towards your Local Marketing Commitment. We may form, change or dissolve cooperatives in our discretion.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, Bigfoot Forestry is not required to establish regional advertising cooperatives. The FDD states that Bigfoot Forestry may, but does not have to, establish these cooperatives. If Bigfoot Forestry does establish regional advertising cooperatives, it has the authority to determine the cooperative's boundaries and specify how it is organized and governed. Bigfoot Forestry can also require franchisees to participate in the cooperative according to its rules and procedures.
Franchisees may be required to pay a cooperative advertising fee, which will not exceed 2% of gross sales. Bigfoot Forestry can either collect these fees and remit them to the cooperative or require franchisees to pay the fees directly. Any cooperative advertising fees paid by the franchisee are credited towards their local marketing commitment.
Bigfoot Forestry retains the right to form, change, or dissolve these cooperatives at its discretion. This means that while a franchisee might be part of a cooperative at one point, Bigfoot Forestry can alter or eliminate it, which could impact the franchisee's advertising strategies and costs.