Does the Bigfoot Forestry agreement confer rights or remedies to individuals who are not parties to the agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to indemnify the Indemnified Parties and hold them harmless for, from and against any and all Losses and Expenses they incur as a result of or in connection with:
- (a) the marketing, use or operation of your Bigfoot Forestry Business;
- (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;
- (d) any representations made by you or your Owner to a transferee in connection with a Transfer;
- (e) any Claim relating to taxes or penalties a Governmental Authority assesses against us as a direct result of your failure to pay or perform functions required of you under this Agreement;
- (f) libel, slander or disparaging comments made by you or your Owners, officers, employees or independent contractors regarding the System, a Bigfoot Forestry Business or an Indemnified Party (this provision does not apply to disclosure of truthful information to Governmental Authorities);
- (g) any labor, employment or similar type of Claim pertaining to your employees (including Claims alleging we are a joint employer of your employees) or our relationship with you or your Owners (including Claims alleging we are an employer of you and/or any of your Owners); or
- (h) any actions, investigations, rulings or proceedings conducted by any Governmental Authority (including the United States Department of Labor, Equal Employment Opportunity Commission or National Labor Relations Board) relating to your employees.
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 outlines specific situations where third parties may be affected, particularly through indemnification clauses. Franchisees agree to indemnify Bigfoot Forestry and related parties (the Indemnified Parties) against losses and expenses incurred due to various actions related to the franchisee's business.
This indemnification extends to situations such as the marketing, use, or operation of the franchisee's Bigfoot Forestry Business, breaches of agreements with third parties (including failures to honor warranties), and certain representations made during a transfer of the franchise. It also covers claims related to taxes or penalties assessed against Bigfoot Forestry due to the franchisee's actions, as well as claims arising from libel, slander, or disparaging comments made by the franchisee or their personnel.
Furthermore, the agreement addresses potential labor, employment, or similar claims pertaining to the franchisee's employees, including claims alleging that Bigfoot Forestry is a joint employer. It also includes actions, investigations, rulings, or proceedings conducted by governmental authorities related to the franchisee's employees. These provisions suggest that while the agreement is primarily between Bigfoot Forestry and the franchisee, its terms can create obligations and potential liabilities for the franchisee concerning the actions and claims of third parties.
In essence, while the franchise agreement is a contract between Bigfoot Forestry and the franchisee, certain clauses, particularly the indemnification clause, can create obligations for the franchisee that extend to the benefit of third parties. This is a common practice in franchising, as franchisors seek to protect themselves from liabilities arising from the actions of their franchisees. Prospective franchisees should carefully review these clauses to understand the scope of their potential liabilities and obligations to parties outside of the direct contractual relationship.