If Bigfoot Forestry cures a breach on behalf of a franchisee, what must the Bigfoot Forestry franchisee do?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, if after the expiration or termination of the Franchise Agreement, Bigfoot Forestry chooses to perform any warranty work under a warranty issued by the franchisee, the franchisee must indemnify and reimburse Bigfoot Forestry. This reimbursement covers all amounts Bigfoot Forestry incurs in connection with performing the warranty work. This includes Bigfoot Forestry's then-current standard rate for any work performed by them or any amount they pay to another franchisee for work performed.

In simpler terms, even after the franchise agreement ends, if Bigfoot Forestry steps in to handle a warranty claim that the franchisee was originally responsible for, the franchisee is on the hook for covering all the costs Bigfoot Forestry incurs. This could include the cost of labor, materials, and any other expenses related to fulfilling the warranty.

This clause protects Bigfoot Forestry from financial losses associated with warranty work that should have been the franchisee's responsibility. It also ensures that customers receive the warranty service they were promised, even if the original franchisee is no longer operating the business. A prospective franchisee should carefully consider the potential financial burden of this clause, as it could create a significant liability even after the franchise agreement has ended.