What constitutes a material breach of the Development Agreement for Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
4.2. Reasonableness of Development Schedule. You represent that you: (a) have conducted your own independent investigation and analysis of the prospects for development of the Bigfoot Forestry Businesses in the Development Territory; (b) approve the Development Schedule as being reasonable and viable; and (c) recognize that any breach of the Development Schedule is a material breach of this Agreement.
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.
7.2. By You. The rights and duties created by this Agreement are personal to you and the Owners. We are granting you area development rights in reliance upon the character, skill, attitude, business ability and financial resources of you and your Owners. Because this Agreement is a personal services contract, neither you nor any Owner may engage in a Transfer (other than a Permitted Transfer) without our prior approval. Any Transfer (other than a Permitted Transfer) without our approval is void and constitutes a breach of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, several actions can constitute a material breach of the Development Agreement. Failing to adhere to the Development Schedule, which outlines the required opening dates for Bigfoot Forestry Businesses, is considered a material breach. If a franchisee fails to meet these deadlines, it is a violation of the agreement, although Bigfoot Forestry may, at its discretion, extend these dates under specific circumstances such as unforeseeable delays.
Additionally, if Bigfoot Forestry terminates any Definitive Agreement due to a default by the franchisee, an owner, or an affiliate, this also constitutes a material event of default that can lead to the termination of the Development Agreement. A Definitive Agreement is any agreement between the franchisee and Bigfoot Forestry or its affiliates. Furthermore, any breach of any provision within the Development Agreement, if not cured within 30 days after receiving a default notice, is considered a material breach and can result in termination.
Finally, engaging in a Transfer (other than a Permitted Transfer) without Bigfoot Forestry's prior approval is a breach of the agreement. Given these stipulations, prospective Bigfoot Forestry franchisees should carefully review the Development Schedule and all terms of the Development Agreement to fully understand their obligations and the potential consequences of non-compliance. They should also maintain open communication with Bigfoot Forestry to address any challenges in meeting the development milestones.