Can Bigfoot Forestry use the Brand Fund for administrative and overhead expenses?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
We administer the Brand Fund to promote public awareness of our brand and improve our System. We may use the Brand Fund to pay for any of the following in our discretion:
- developing, distributing or administering advertising and marketing materials and programs
- conducting and administering promotions, contests or giveaways
- public and consumer relations and publicity
- brand development
- sponsorships and charitable and nonprofit donations and events
- research and development of technology, products and services
- website development and search engine optimization
- development, maintenance and promotion of an ecommerce platform
- development and implementation of quality control programs
- conducting market research
- reimbursing us for costs we incur to host franchisee conferences
- changes and improvements to the System
- fees and expenses charged by advertising agencies we engage to provide marketing services
- collecting and accounting for brand fund fees and preparing financial accountings of the Brand Fund
- any other programs or activities we deem appropriate to promote or improve the System
- reimbursing us for administrative, overhead and other expenses we incur to administer the Brand Fund, including compensation paid to our personnel for time spent working on Brand Fund matters
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the Brand Fund can be used to reimburse Bigfoot Forestry for administrative, overhead, and other expenses incurred to administer the Brand Fund. This includes compensation paid to their personnel for time spent working on Brand Fund matters. This means that a portion of the fees franchisees pay into the Brand Fund could be used to cover the franchisor's administrative costs related to managing the fund itself.
This is a fairly common practice in franchising, as managing a brand fund involves various administrative tasks. However, it's important for prospective franchisees to understand how much of the fund is allocated to these administrative expenses versus direct marketing and advertising efforts. The FDD states that an unaudited financial accounting of Brand Fund contributions and expenditures will be prepared annually and made available to franchisees upon request.
Bigfoot Forestry retains complete control and discretion over all advertising programs paid for by the Brand Fund. The franchisee must pay a brand fund fee, which is currently 1% of Gross Sales, but cannot exceed 3% of Gross Sales. Company-owned Bigfoot Forestry Businesses contribute to the Brand Fund on the same basis as franchisees. Franchisees should review the annual financial accounting to ensure the Brand Fund is being used effectively and in accordance with the FDD's guidelines.