Does the Bigfoot Forestry agreement grant the franchisor discretion in the relationship with the franchisee?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement, and the relationship of the parties inherent in this Agreement, grants us discretion to make decisions, take actions and/or refrain from taking actions not inconsistent with our explicit rights and obligations under this Agreement that may favorably or adversely affect your interests.
We will use our judgment in exercising the discretion based on our assessment of our own interests and balancing those interests against the interests of our franchisees, but without considering the individual interests of you or any other franchisee.
- **12.9.
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 grants Bigfoot Forestry discretion to make decisions that may affect the franchisee's interests. Specifically, Bigfoot Forestry retains the right to make decisions, take actions, or refrain from taking actions that are consistent with their explicit rights and obligations under the agreement. These decisions can favorably or adversely affect the franchisee's interests.
Bigfoot Forestry will use its judgment when exercising this discretion, basing it on an assessment of its own interests and balancing those interests against the interests of its franchisees. However, the company will not consider the individual interests of any specific franchisee.
This clause highlights that while franchisees operate independently, Bigfoot Forestry retains significant control and decision-making power that can impact the franchisee's business. Prospective franchisees should carefully consider how this discretion might affect their operations and profitability. It is also important to note that the agreement includes a covenant of good faith and fair dealing, but this covenant does not imply any rights or obligations inconsistent with the express terms of the agreement.