How is the royalty fee calculated for a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
pay us an initial franchise fee in the amount set forth in Part B of ATTACHMENT "A" in one lump sum at the time you sign this Agreement. The initial franchise fee is fully earned by us and nonrefundable once this Agreement is signed.
- 13.2. Royalty Fee. On the 10th day of each month (the "royalty fee due date"), you must pay us a royalty fee equal to the greater of: (a) the minimum monthly royalty fee; or (b) the percentage-based royalty fee. The minimum royalty fee is: (i) $0 from the Effective Date through the end of the third (3rd) full month after the Effective Date; (ii) $500 per month for the fourth (4th), fifth (5th) and sixth (6th ) full months after the Effective Date; and (iii) $750 per month for the remainder of the Term. The minimum royalty fee applies regardless of whether your Business has opened; provided, however, that if you are unable to open by the beginning of the fourth (4th) month after the Effective Date due to our failure to timely perform our preopening obligations, we will not impose the minimum royalty fee until such time that we have fully performed our preopening obligations. The percentage-based royalty fee is calculated by applying the
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees must pay a royalty fee on the 10th day of each month. The royalty fee is the greater of either a minimum monthly royalty fee or a percentage-based royalty fee.
The minimum royalty fee starts at $0 from the effective date through the end of the third full month after the effective date. It then increases to $500 per month for the fourth, fifth, and sixth full months after the effective date, and then to $750 per month for the remainder of the term. This minimum royalty fee applies regardless of whether the business has opened, unless the franchisee is unable to open due to Bigfoot Forestry's failure to perform its preopening obligations in a timely manner.
The percentage-based royalty fee is calculated by applying an 'applicable royalty rate' to the Gross Sales generated during the immediately preceding month within the associated Gross Sales 'bracket'. The specific monthly Gross Sales brackets, applicable royalty rates, and total royalty fees are detailed in a table within the FDD, although the excerpt does not include the specific figures for these brackets and rates.