If a franchisee breaches a Definitive Agreement with Bigfoot Forestry, what costs must they reimburse?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
"Definitive Agreements" means, collectively: (a) this Agreement; (b) the Area Development Agreement pursuant to which this Agreement is executed (if applicable); (c) any other Franchise Agreement between you (or your affiliate) and us (or our affiliate) for a Bigfoot Forestry Business or any other franchised concept; and (d) all ancillary agreements related to the foregoing, including Franchise Owner Agreements.
If we notify you of a breach of our standards or operating procedures (including failure to submit required reports in a timely manner) and you fail to cure within the time period we prescribe, we may (in addition to our other remedies under this Agreement) impose a noncompliance fee of $500 per occurrence.
We may impose a separate $100 fee every 48 hours the same noncompliance issue remains uncured after we impose the initial fee.
After the expiration or termination of this Agreement, if we choose to perform, or appoint another franchisee to perform, any warranty work under a warranty issued by you, you agree to indemnify and reimburse us for all amounts we incur in connection with the performance of such
warranty work (including payment of our then-current standard rate for any work performed us or any amount we pay to another franchisee for any work performed by such franchisee).
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, a "Definitive Agreement" includes the Franchise Agreement, Area Development Agreement, any other Franchise Agreement between the franchisee and Bigfoot Forestry, and all ancillary agreements related to the foregoing. The document does not explicitly state the costs a franchisee must reimburse if they breach a Definitive Agreement. However, it does state that if Bigfoot Forestry chooses to perform warranty work under a warranty issued by the franchisee after the agreement's expiration or termination, the franchisee agrees to indemnify and reimburse Bigfoot Forestry for all amounts incurred in connection with the performance of such warranty work. This includes the then-current standard rate for any work performed by Bigfoot Forestry or any amount paid to another franchisee for work performed.
Additionally, if a franchisee fails to comply with Bigfoot Forestry's standards or operating procedures, including submitting required reports on time, and fails to correct the issue within the prescribed time, Bigfoot Forestry may impose a noncompliance fee of $500 per occurrence. A separate $100 fee may be imposed every 48 hours the same noncompliance issue remains uncured after the initial fee is imposed.
While the FDD outlines specific fees and reimbursements related to warranty work and non-compliance, it does not provide a comprehensive list of all potential costs a franchisee might incur for breaching a Definitive Agreement. A prospective franchisee should seek clarification from Bigfoot Forestry regarding the full scope of financial liabilities associated with breaching any of the Definitive Agreements.