What are the Bigfoot Forestry franchisee's obligations regarding inspections and audits, and where is this detailed?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
Compliance), PCI-DSS SAQ (Self-Assessment Questionnaire) or other mutually-agreed method; and (e) promptly notify us of any PCI-DSS noncompliance to discuss your remediation efforts and timeline.
16. INSPECTION AND AUDIT
- 16.1. Inspections. For quality control purposes and to ensure compliance with this Agreement, we (or our representative) may evaluate your operations and inspect your books, records, accounts and tax returns. We will determine the scope of the inspection, which may include, among other things:
- (a) evaluating the physical condition of your Bigfoot Forestry Vehicle and operating equipment for cleanliness, sanitation and state of repair;
- (b) examining and copying your books, records, accounts and tax returns;
- (c) inspecting and testing your equipment;
- (d) monitoring the provision of Bigfoot Forestry Services by your Service Technicians;
- (e) monitoring and speaking with your staff; and
- (f) contacting your customers.
We may conduct inspections at any time without prior notice; provided, however, that we will notify you at least 48 hours before inspecting your home office and schedule a reasonable time for the inspection. We (or our representative) will use reasonable efforts to minimize any interference with the operation of your Business. You and your employees must cooperate and not interfere with the inspection. You consent to us accessing your Technology Systems to retrieve Business Data. You must reimburse all Travel Expenses and other costs we incur to conduct an inspection to verify whether you remedied: (a) a health or safety issue identified by a Governmental Authority; or (b) a breach of system standards we bring to your attention. We bear the cost of all other inspections
16.2. Audit. We may audit your books and records at any time. You must fully cooperate with us and any Person we hire to conduct the audit. If an audit reveals an understatement of Gross Sales, you must immediately pay us all additional fees you owe together with any late fee imposed pursuant to §13.4. You must reimburse us for the cost of any audit (including reasonable accounting and attorneys' fees and Travel Expenses incurred by us or the auditor) that: (a) is required due to your failure to provide information we request, preserve records or file reports as required by this Agreement; or (b) reveals
you understated Gross Sales by at least 2%. We bear the cost of all other audits. Your reimbursement of our audit costs does not preclude us from terminating this Agreement.
17. INTELLECTUAL PROPERTY
- 17.1. Ownership & Use. You acknowledge that: (a) we are (or our affiliate is) the exclusive owner of the Intellectual Property and the associated goodwill; and (b) your right to use the Intellectual Property is derived solely from this Agreement and is limited to a license to operate your Business during the Term pursuant to, and only in compliance with, this Agreement and the Manual. You may not use the Intellectual Property in connection with the sale of any unauthorized product or service or in any other manner not expressly authorized by us. Any unauthorized use of the Intellectual Property constitutes an infringement of our rights. You must comply with all provisions in the Manual governing use of the Intellectual Property. You will not acquire any goodwill, title or interest in or to the Intellectual Property.
- 17.2. Intellectual Property Changes. We may change the Intellectual Property at any time in our sole discretion, including the Copyrighted Materials, Know-how, Marks and/or System. You must, at your expense, implement all Intellectual Property changes we require in accordance with our instructions.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees are subject to inspections and audits to ensure quality control and compliance with the franchise agreement, as detailed in Item 23. Bigfoot Forestry (or their representative) can evaluate the franchisee's operations, inspect books, records, accounts, and tax returns. Inspections may occur at any time without prior notice, except for home office inspections, which require at least 48 hours' notice and scheduled at a reasonable time. Franchisees and their employees must cooperate with inspections and not interfere. Franchisees also consent to Bigfoot Forestry accessing their Technology Systems to retrieve Business Data. Franchisees are responsible for reimbursing travel expenses and other costs incurred by Bigfoot Forestry for inspections related to health/safety issues or breaches of system standards that the franchisee failed to remedy.
Bigfoot Forestry may also audit a franchisee's books and records at any time, and franchisees must fully cooperate with the audit. If an audit reveals an understatement of Gross Sales, the franchisee must immediately pay the additional fees owed, along with any late fees. The franchisee is responsible for reimbursing Bigfoot Forestry for the cost of the audit (including accounting and attorneys' fees and Travel Expenses) if the audit was required due to the franchisee's failure to provide information, preserve records, or file reports as required by the agreement, or if the audit reveals an understatement of Gross Sales by 5% or more.
Furthermore, Bigfoot Forestry may periodically inspect a franchisee's home office, equipment, and job sites for quality control purposes, addressing issues like customer service, equipment condition, and quality of work. Franchisees must fully cooperate with all inspections. Bigfoot Forestry may implement a scoring system based on inspection results, and failure to achieve a passing grade constitutes a default under the Franchise Agreement. Franchisees must take corrective actions within a prescribed time frame to rectify any non-compliance issues identified during an inspection. Failure to comply with standards can result in a noncompliance fee of $500 per occurrence, with an additional $100 fee every 48 hours the issue remains uncured.