Can a Bigfoot Forestry franchisee incur debt on behalf of the franchisor?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither party may: (a)
- make any express or implied agreement, warranty or representation, or incur any debt, in the name of or on behalf of the other; or (b) represent that our relationship is other than franchisor and franchisee.
Neither party is obligated by any agreement or representation made by the other party unless expressly authorized by this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, a franchisee cannot incur any debt on behalf of the franchisor. The franchise agreement explicitly states that neither party in the agreement can make any express or implied agreement, warranty, or representation, or incur any debt in the name of or on behalf of the other.
This provision protects Bigfoot Forestry from being held liable for any debts or obligations that a franchisee might incur while operating their business. It also ensures that franchisees understand they are financially responsible for their own business operations and cannot rely on the franchisor to cover their debts.
This type of clause is standard in franchise agreements to clearly define the financial responsibilities and liabilities of each party, maintaining a distinct separation between the franchisor's and franchisee's financial obligations. Prospective franchisees should be aware of this clause and ensure they have sufficient capital and financial planning to manage their business independently.