What is the royalty rate for Bigfoot Forestry if gross sales are greater than $125,000.01?
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. |
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 structured as a percentage of gross sales or a minimum monthly fee, whichever is greater. The percentage varies based on gross sales brackets. For gross sales exceeding $125,000.01, the royalty rate is 4.5%. Franchisees are required to submit monthly gross sales reports to Bigfoot Forestry.
This decreasing royalty rate structure incentivizes franchisees to increase their sales volume, as the percentage paid to Bigfoot Forestry decreases as revenue grows. However, franchisees need to carefully manage their finances to ensure they can meet either the percentage-based royalty or the minimum monthly royalty fee, especially during periods of lower sales. The minimum monthly royalty fee begins the 4th full month after signing the Franchise Agreement, even if the franchisee has not opened their location yet.
In addition to the royalty fee, Bigfoot Forestry franchisees also pay other fees such as a brand fund fee of up to 3% of gross sales (currently 1%), a local marketing commitment of the greater of 2% of gross sales or $1,000 per month, and a cooperative advertising fee of up to 2% of gross sales. These additional fees contribute to the overall cost of operating a Bigfoot Forestry franchise and should be considered when evaluating the financial viability of the franchise.