What constitutes abandonment that would allow Bigfoot Forestry to terminate the franchise agreement with cause?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
| PROVISION | SECTIONS IN AGREEMEN T | SUMMARY | |
|---|---|---|---|
| a. Length of franchise term | FA: 1 (definition of Term) & 4.1 ADA: 1 (definition of Term) | Term is equal to 10 years. Term expires on the opening date listed in the development schedule for the last Bigfoot Forestry Business you are required to develop. | |
| b. Renewal or extension of the term | THE FRANCHISE RELATIONSHIP | FA: 4.1 & 4.2 ADA: Not Applicable | If you meet our conditions for renewal, you can enter into 2 consecutive successor franchise agreements. Each renewal term is 5 years. The parties may mutually agree to further renewals but neither party is obligated to do so (subject to state law). You may not renew or extend the term of the ADA. |
| PROVISION | SECTIONS IN AGREEMENT | SUMMARY | |
| c. Requirements for you to renew or | FA: 4.1 & 4.2 | You must: not be in default; give us timely notice; sign then-current form of franchise agreement; sign general release (subject to state law); pay renewal fee; and upgrade Technology Systems, operating equipment and tools to conform to our then-current standards. | |
| extend | ADA: Not Applicable | If you renew, you may be required to sign a contract with materially different terms and conditions than the original contract. You may not renew or extend the term of the ADA. | |
| d. Termination by | FA: 20.1 | You can terminate if we default and fail to timely cure. | |
| you | ADA: Not Applicable | You can terminate under any grounds permitted by law. | |
| e. Termination by | FA: 20.3 | We can terminate without cause if you provide your written consent. | |
| us without cause | ADA: 8.2 | ||
| f. Termination by | FA: 20.2 | We can terminate if you default. | |
| us with cause | ADA: 8.1 | ||
| g. "Cause" defined - curable defaults | FA: 20.2 ADA: 8.1 | You have the following cure periods: (a) 24 hours for health or safety hazards; (b) 10 days for financial defaults; (c) 20 days for loss of a required license or permit; and (d) 30 days for any other default (other than a default described below under "non-curable defaults"). You have 30 days to cure any default, other than defaults described below under "non-curable defaults". | |
| h. "Cause" defined - non-curable defaults | FA: 20.2 ADA: 8.1 | The following defaults cannot be cured: insolvency, bankruptcy or seizure of assets; failure to successfully complete training; failure to open in timely manner; abandonment; conviction of certain crimes or subject of certain administrative actions; violation of material law; act that may adversely affect reputation of System or Marks; material nd underreporting of Gross Sales misrepresentations; 2 by 2% or more; unauthorized Transfers; unauthorized use of our intellectual property; breach of brand protection covenant, legal compliance representation or Franchise Owner Agreement; failure to notify us of a matter described in §15.6; 3 or more default notices in a 12-month period; or termination of any other agreement between you (or your affiliate) and us (or our affiliate) due to your default. However, termination of an ADA due to breach of the development schedule is not grounds for termination of any Franchise Agreement that is otherwise in good standing. If we terminate a franchise agreement due to your default, we may terminate the ADA without opportunity to cure. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, abandonment of the franchise is considered a non-curable default that allows Bigfoot Forestry to terminate the franchise agreement with cause. This means that if a franchisee abandons the business, they cannot take any steps to reverse the termination.
Other non-curable defaults that could lead to termination include insolvency, bankruptcy or seizure of assets; failure to successfully complete training; failure to open in a timely manner; conviction of certain crimes or being subject to certain administrative actions; violation of material law; any act that may adversely affect the reputation of the Bigfoot Forestry System or Marks; material misrepresentations; underreporting of Gross Sales by 2% or more; unauthorized Transfers; unauthorized use of intellectual property; breach of brand protection covenant, legal compliance representation or Franchise Owner Agreement; failure to notify Bigfoot Forestry of a matter described in §15.6; 3 or more default notices in a 12-month period; or termination of any other agreement between the franchisee (or their affiliate) and Bigfoot Forestry (or its affiliate) due to the franchisee's default.
Prospective franchisees should carefully consider these conditions, as any of these non-curable defaults could result in the termination of their franchise agreement and loss of their investment. It is important to understand what actions or inactions constitute abandonment in the eyes of Bigfoot Forestry, as well as the other non-curable defaults, to avoid unintentional violations of the franchise agreement.