Under what conditions can Bigfoot Forestry increase the Cooperative Advertising Fee?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 $125,000.01+ us monthly Gross Sales reports. | ||
| Brand Fund Fee | Up to 3% of Gross Sales (currently 1% of Gross Sales) | Same as royalty fee | We deposit this fee into a Brand Fund. You have no voting rights pertaining to the administration of the Brand Fund, the creation or placement of advertising, or the amount of the brand fund fee. | |
| Local Marketing Commitment | Greater of 2% of Gross Sales or $1,000 per month | Monthly, as incurred | This is the minimum amount you must spend to advertise your Business in your local market (the "Local Marketing Commitment"). This amount is in addition to your brand fund fee. The $475 monthly fee you pay our designated SEO company is credited towards your Local Marketing Commitment. | |
| Cooperative Advertising Fee | Up to 2% of Gross Sales | Same as royalty fee | Company-owned outlets have the same voting power as franchised outlets in a cooperative. If a majority of outlets are company-owned, we will not increase the fee unless a majority of franchised outlets in favor of the fee increase. Cooperative advertising fees are credited against the Local Marketing Commitment. |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the Cooperative Advertising Fee can be up to 2% of Gross Sales. This fee is due at the same time as the royalty fee. Company-owned outlets have the same voting power as franchised outlets in a cooperative. If a majority of outlets are company-owned, Bigfoot Forestry will not increase the fee unless a majority of franchised outlets are in favor of the fee increase.
This means that if Bigfoot Forestry owns more than 50% of the outlets, they need the approval of a majority of the franchisees before they can raise the cooperative advertising fee. This provides some protection for franchisees against arbitrary increases in the fee. The cooperative advertising fees paid are credited against the Local Marketing Commitment, which is the minimum amount a franchisee must spend to advertise their Bigfoot Forestry business in their local market.
For a prospective franchisee, this condition offers a degree of assurance that the cooperative advertising fee will not be raised without the consent of a majority of franchisees if company-owned stores constitute the majority of the system. It is important to note that the franchisor and company-owned stores have the same voting power as the franchisees. Franchisees should consider the implications of this voting structure and the potential impact on cooperative advertising decisions.