exception

Under what condition will Bigfoot Forestry not impose the minimum royalty fee?

Bigfoot_Forestry Franchise · 2025 FDD

Answer from 2025 FDD Document

If we approve your request to sell goods or services to customers that are not part of our System you must: (a) include all revenue generated from such sales in Gross Sales and pay royalty and other fees based upon such revenue; and (b) comply with any other requirements we impose as a condition to granting our approval.

Source: Item 23 — RECEIPT (FDD pages 42–162)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain information regarding conditions under which Bigfoot Forestry will not impose the minimum royalty fee. The excerpts do discuss royalty fees in the context of revenue generated from the sale of goods or services to customers that are not part of the Bigfoot Forestry system, stating that if the franchisee is approved to sell goods or services to customers outside of the Bigfoot Forestry system, all revenue generated from such sales must be included in Gross Sales and are subject to royalty and other fees.

Other sections discuss fees related to development, advertising, and noncompliance with standards, but none specify circumstances where the minimum royalty fee would be waived. The document outlines various fees franchisees may encounter, such as development fees, advertising cooperative fees (up to 2% of Gross Sales), and noncompliance fees ($500 per occurrence, plus $100 every 48 hours the issue remains uncured).

To fully understand the conditions under which Bigfoot Forestry might waive the minimum royalty fee, a prospective franchisee should directly ask the franchisor for clarification. This inquiry should cover specific scenarios or circumstances that could lead to a waiver or reduction of the minimum royalty fee, ensuring a clear understanding of the financial obligations and potential exceptions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.