What is the cure period for a Bigfoot Forestry franchisee's financial defaults?
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". |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 33–36)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, a franchisee has 10 days to cure financial defaults. Specifically, if a franchisee fails to meet their financial obligations as defined in the franchise agreement, Bigfoot Forestry will issue a notice of default. The franchisee then has a 10-day window to rectify the situation, such as by making the overdue payments or resolving the financial breach.
It is important to note that failure to cure the financial default within this 10-day period can lead to termination of the franchise agreement. This highlights the importance of maintaining sound financial management and adhering to the financial terms outlined in the agreement.
In addition to financial defaults, the FDD specifies cure periods for other types of defaults as well. For instance, health or safety hazards must be cured within 24 hours, while other defaults have a 30-day cure period. However, certain defaults, such as insolvency or bankruptcy, are considered non-curable and can result in immediate termination.