What is the voting power of company-owned outlets in a Bigfoot Forestry cooperative advertising program?
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, company-owned outlets have the same voting power as franchised outlets in a cooperative advertising program. This means that each company-owned location gets an equal vote in decisions related to the cooperative's advertising efforts.
However, the FDD also states that if a majority of outlets participating in the cooperative are company-owned, Bigfoot Forestry will not increase the cooperative advertising fee unless a majority of the franchised outlets vote in favor of the increase. This provision protects franchisees from fee increases imposed solely by the company's own outlets.
The cooperative advertising fee can be up to 2% of Gross Sales, and it is due at the same time as the royalty fee. These fees 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. This commitment is the greater of 2% of Gross Sales or $1,000 per month.