Who is the Bigfoot Forestry agreement binding upon, besides the immediate parties involved?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) the breach of any Definitive Agreement committed by you or your Owner or affiliate;
- (c) the breach of an agreement with a third party committed by you or your Owner or affiliate, including a failure to honor a warranty or service guarantee;
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the franchise agreement extends beyond just the franchisee and franchisor. Specifically, the agreement can bind the franchisee's Owners or affiliates. This means that individuals or entities with an ownership stake in the franchise or those affiliated with the franchisee can be held responsible for breaches or failures to comply with the franchise agreement.
This has significant implications for prospective franchisees. If a franchisee's Owner or affiliate breaches any Definitive Agreement, which includes the Franchise Agreement, Area Development Agreement, or any ancillary agreements, they can be held liable. This liability extends to breaches of agreements with third parties, such as failing to honor a warranty or service guarantee.
Furthermore, the franchisee agrees to indemnify the Indemnified Parties (as defined in the FDD) and hold them harmless against any losses or expenses incurred due to a breach of any Definitive Agreement committed by the franchisee, their Owner, or affiliate. This indemnification clause means the franchisee is responsible for covering any costs or damages the franchisor incurs due to the actions of the franchisee, their Owners, or affiliates. This could include legal fees, settlements, or other expenses arising from lawsuits or claims related to the franchise operation.