What is Bigfoot Forestry entitled to if a franchisee breaches Section 3 of the Franchise Agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
t such time that you are (or your spouse is) no longer an Owner. You agree to assign to us or our designee, without charge, all rights to any Improvement developed by you, including the right to grant sublicenses. If applicable Law precludes you from assigning ownership to us, then you agree to perpetually license the Improvement to us, free of charge, with full rights to use, commercialize and sublicense the same.
- (b) Unfair Competition. You may not engage in any Prohibited Activities at any time: (i) that you are (or your spouse is) an Owner; or (ii) during the Restricted Period. Notwithstanding the foregoing, you may have an interest in a Competing Business during the Restricted Period as long as the Competing Business does not provide competitive services at job sites located in the Restricted Territory. If you engage in any Prohibited Activity during the Restricted Period (other than having an interest in a
Competing Business permitted by this Section) your Restricted Period will be extended by the period of time during which you engaged in the Prohibited Activity. Any such extension of time will not constitute a waiver of your breach or impair any of our rights or remedies relating to your breach. For purposes of clarity, you remain bound by any non-competition covenants in other Definitive Agreements that remain in effect for a period of time that extends beyond the expiration of the Restricted Period under this Agreement, and the expiration of the Restricted Period under this Agreement does not in any way diminish your obligation to comply with such other covenants.
- (c) Family Members. You could circumvent the purpose of §3 by disclosing Confidential Information to immediate family members (i.e., parent, sibling, child or grandchild) and it would be difficult for us to prove your breach. For that reason you are presumed to have breached this Agreement if an immediate family member: (i) engages in a Prohibited Activity at any time you are prohibited from doing so; or (ii) uses or discloses Confidential Information. However, you may rebut this presumption with evidence conclusively showing you did not disclose Confidential Information to the family member.
- (d) Covenants Reasonable. You agree that: (i) the covenants in §3 are reasonable in duration and geographic scope; and (ii) you have sufficient resources, business experience and opportunities to earn an adequate living while complying with these covenants.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Section 3 of the Bigfoot Forestry Franchise Agreement outlines brand protection covenants related to intellectual property, confidential information, and unfair competition. If a franchisee violates the unfair competition clause by engaging in prohibited activities during the restricted period, the restricted period will be extended by the amount of time the franchisee was engaged in the prohibited activity. This extension does not waive Bigfoot Forestry's right to pursue other remedies for the breach.
Section 3(a) requires franchisees to protect Bigfoot Forestry's intellectual property and confidential information, use them only for operating their franchise, maintain confidentiality, prevent unauthorized copies, and stop using them when they are no longer an owner. Franchisees must also assign rights to any improvements they develop to Bigfoot Forestry. If applicable law prevents assignment, the franchisee must perpetually license the improvement to Bigfoot Forestry free of charge, with full rights to use, commercialize, and sublicense it.
Section 3(b) addresses unfair competition, preventing franchisees from engaging in prohibited activities while they are owners or during the restricted period. However, franchisees can have an interest in a competing business during the restricted period if it does not provide competitive services at job sites within the restricted territory. If a franchisee breaches this section, the restricted period is extended by the duration of the prohibited activity, but this extension does not waive Bigfoot Forestry's rights or remedies for the breach. The franchisee remains bound by any non-competition covenants in other agreements that extend beyond the restricted period of the Franchise Agreement.
In summary, if a Bigfoot Forestry franchisee breaches Section 3 of the Franchise Agreement, Bigfoot Forestry is entitled to extend the restricted period and pursue other legal remedies. The specific remedies available to Bigfoot Forestry for breaches of Section 3(a) are not detailed in the provided excerpts.