What is the royalty rate for Bigfoot Forestry if gross sales are between $100,000.01 and $125,000?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
age-11-0">ITEM 6 OTHER FEES
| TYPE OF FEE 1 | 2, 3 AMOUNT | DUE DATE | REMARKS | |
|---|---|---|---|---|
| Greater of percentage-based royalty fee (7.0% - 4.5% of Gross Sales depending on | The minimum after signing the Franchise have not opened). The minimum monthly is (a) $500 for signing and (b) $750 within higher monthly Gross Sales brackets: | royalty fee begins the 4th full month Agreement (even if you royalty fee the 4th, 5th & 6th full months after for the rest of the term. We use the following sliding scale royalty structure with a decreasing royalty rate applied to Gross Sales | ||
| Royalty Fee | bracket) or the minimum | 10th day of month | Royalty Rate | Gross Sales Bracket |
| monthly royalty fee | 7.0% 6.5% 6.0% 5.0% 4.5% You must send | $0-$50,000 $50,000.01-$75,000 $75,000.01-$100,000 $100,000.01-$125,000 $125,000 |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the royalty fee is dependent on the gross sales bracket. For gross sales between $100,000.01 and $125,000, the royalty rate is 5.0%. This royalty fee, or the minimum monthly royalty fee (whichever is greater), is due on the 10th day of each month. Franchisees must also send Bigfoot Forestry monthly gross sales reports.
This means that if a Bigfoot Forestry franchisee generates gross sales within the $100,000.01 to $125,000 range, they will owe 5.0% of that revenue to the company as a royalty. For example, if a franchisee's gross sales are exactly $110,000 in a given month, the royalty fee would be $5,500 (5.0% of $110,000). It is important to note that this is in addition to other fees such as the Brand Fund Fee and Local Marketing Commitment.
The royalty structure uses a sliding scale with decreasing royalty rates as gross sales increase. The royalty rate ranges from 7.0% for gross sales between $0 and $50,000 to 4.5% for gross sales of $125,000.01 or more. This incentivizes franchisees to increase their sales volume, as a higher sales volume results in a lower percentage paid in royalties.
Franchisees should carefully consider these royalty obligations when projecting their potential earnings and profitability. Accurately forecasting gross sales and understanding the sliding scale royalty structure is crucial for financial planning and ensuring the long-term success of their Bigfoot Forestry franchise.