What are some examples of 'good cause' for Bigfoot Forestry to refuse a transfer of ownership?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, the document outlines specific instances that constitute 'good cause' for the termination of the Development Agreement, which would consequently prevent the transfer of ownership. These reasons include the termination of any Definitive Agreement due to a default by the developer, their owners, or affiliates. Additionally, breaching any provision of the Development Agreement without rectifying it within 30 days after receiving a default notice also constitutes 'good cause'.
These stipulations are significant for potential Bigfoot Forestry developers as they highlight the importance of adhering to the terms and conditions outlined in both the Development Agreement and any related Definitive Agreements. Failure to comply with these agreements can lead to termination, thereby forfeiting the developer's rights and obligations, including the ability to transfer ownership. Moreover, the FDD specifies that in the event of termination, Bigfoot Forestry will not refund any portion of the development fee, representing a substantial financial risk for non-compliant developers.
It is important to note that the FDD also provides for termination by mutual agreement, in which case any notice or cure period is waived. This suggests that Bigfoot Forestry is open to amicable separations, but the initial conditions for 'good cause' terminations underscore the necessity for developers to diligently meet their contractual obligations. Understanding these conditions is crucial for anyone considering entering into a Development Agreement with Bigfoot Forestry, as it directly impacts their investment and operational control.