What constitutes 'good cause' for Bigfoot Forestry to terminate the franchise agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
8.1. By Us. We may terminate this Agreement, effective upon delivery of a notice of termination, for any of the following reasons, all of which constitute material events of default and "good cause" for termination, and without opportunity to cure except for any cure period expressly set forth below:
- (a) if we terminate any Definitive Agreement due to a default committed by you or one of your Owners or affiliates; or
- (b) if you (or an Owner) breach any provision of this Agreement and fail to cure within 30 days after receipt of a default notice.
8.2. By Mutual Agreement. If you and we mutually agree in writing to terminate this Agreement, any notice or cure period that might otherwise apply shall be deemed waived.
9. EFFECT OF TERMINATION. Termination of this Agreement ends all your rights and development obligations under this Agreement, including your interests in the Development Territory and right to sign new Franchise Agreements or open new Bigfoot Forestry Businesses. We will not refund any portion of the development fee.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, 'good cause' for termination of the Development Agreement by Bigfoot Forestry includes specific events of default. These events are considered material and allow Bigfoot Forestry to terminate the agreement with notice.
Specifically, Bigfoot Forestry may terminate the Development Agreement if any Definitive Agreement is terminated due to a default committed by the franchisee, one of their Owners, or their affiliates. Additionally, Bigfoot Forestry can terminate the agreement if the franchisee (or an Owner) breaches any provision of the Development Agreement and fails to cure the breach within 30 days after receiving a default notice.
It is important to note that the franchisee has an opportunity to cure a breach within 30 days of a default notice, unless the termination is due to the termination of a Definitive Agreement. However, if both Bigfoot Forestry and the franchisee mutually agree in writing to terminate the Development Agreement, any notice or cure period is waived. Termination ends all the franchisee's rights and development obligations, including interests in the Development Territory and the right to sign new Franchise Agreements or open new Bigfoot Forestry Businesses, without any refund of the development fee.