factual

If a court finds a covenant in the Bigfoot Forestry agreement unreasonable, what can happen?

Bigfoot_Forestry Franchise · 2025 FDD

Answer from 2025 FDD Document

If a court or arbitrator concludes any promise or covenant in this Agreement is unreasonable or unenforceable, we or the court or arbitrator may modify such promise or covenant to the minimum extent necessary to make it enforceable.

Source: Item 23 — RECEIPT (FDD pages 42–162)

What This Means (2025 FDD)

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, if a court or arbitrator determines that any promise or covenant within the Franchise Agreement is unreasonable or unenforceable, Bigfoot Forestry, the court, or the arbitrator has the option to modify the promise or covenant. The modification would be limited to the minimum extent necessary to make the covenant enforceable. This provision ensures that as much of the original agreement as possible remains in effect, even if specific parts are challenged.

This clause is a fairly standard 'severability' provision in franchise agreements. It aims to preserve the overall contract by allowing for adjustments to problematic sections rather than invalidating the entire agreement. This protects Bigfoot Forestry's interests by ensuring the franchisee remains bound by the core obligations of the franchise relationship.

For a prospective Bigfoot Forestry franchisee, this means that even if a specific clause seems overly restrictive, there's a mechanism for it to be modified rather than completely nullified. However, franchisees should be aware that the modification will likely be the minimum change needed to make the clause enforceable, which may still impose restrictions. It is advisable to seek legal counsel to fully understand the implications of each covenant before signing the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.