If a covenant in the Bigfoot Forestry agreement is deemed unenforceable, what may happen?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
Each section of this Agreement (and portion thereof) is severable.
If applicable Law imposes mandatory terms that conflict with this Agreement, the terms required by such Law shall govern to the extent of the inconsistency.
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 finds any promise or covenant within the franchise agreement to be unreasonable or unenforceable, either Bigfoot Forestry or the court/arbitrator has the option to modify the promise or covenant. This modification would be limited to the minimum extent necessary to make the covenant enforceable. This clause ensures that as much of the original agreement as possible remains in effect, even if specific parts are challenged.
This "severability" clause is a common feature in franchise agreements. It protects the overall contract by allowing for adjustments to specific terms without invalidating the entire agreement. This is particularly important for franchisors like Bigfoot Forestry, as it helps maintain a consistent set of standards and obligations across all franchisees.
For a prospective Bigfoot Forestry franchisee, this means that if they ever dispute a specific clause in the agreement and a court agrees with them, the clause is more likely to be modified than thrown out completely. This could impact the franchisee positively or negatively depending on the specific covenant and the nature of the modification. It is important to understand that the modification will aim to make the covenant enforceable, which may still place some obligation on the franchisee.