What is the royalty rate for Bigfoot Forestry if gross sales are between $0 and $50,000?
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. |
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 $0 and $50,000, the royalty rate is 7.0%. This royalty fee is due on the 10th day of the month. Franchisees must also send Bigfoot Forestry monthly gross sales reports.
In addition to the percentage-based royalty fee, Bigfoot Forestry also requires a minimum monthly royalty fee. The minimum monthly royalty fee begins the 4th full month after signing the Franchise Agreement, even if the franchisee has not opened. The minimum monthly royalty fee is (a) $500 for the 4th, 5th, and 6th full months after signing and (b) $750 for the rest of the term.
It is important to note that the royalty fee is calculated on Gross Sales, which Bigfoot Forestry defines as all gross sums billed or collected from goods and services, plus other sums collected from the business operation, including advertising revenues, sponsorship fees, and business interruption insurance proceeds. Gross Sales excludes sales or use taxes, customer refunds, and revenues from the sale of equipment in the ordinary course of business. A prospective franchisee should carefully consider these factors when projecting revenue and royalty payments.