If a Bigfoot Forestry franchisee is insolvent, can the franchisor terminate the agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
and the delay or failure could not have been prevented by reasonable precautions by the non-performing party; (c) nothing herein shall excuse or permit any delay or failure to pay fees or other amounts owed on the applicable due date; (d) insolvency, lack of required funds or financing, currency fluctuations, currency devaluations, foreign exchange controls or inflation shall never be deemed Force Majeure; and (e) an epidemic or pandemic of a contagious illness or disease, or economic or financial changes caused by an epidemic or pandemic of a contagious illness or disease, shall never be deemed Force Majeure except to the extent a Governmental Authority mandates closure (or prevents the opening) of the Bigfoot Forestry Business as a result of such epidemic or pandemic.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, insolvency is explicitly excluded as a valid reason for Force Majeure. The FDD states that 'insolvency, lack of required funds or financing, currency fluctuations, currency devaluations, foreign exchange controls or inflation shall never be deemed Force Majeure.'
This means that if a Bigfoot Forestry franchisee becomes insolvent, they cannot claim Force Majeure to excuse any delays or failures to meet their obligations under the franchise agreement. The franchisee remains responsible for fulfilling all contractual obligations, including timely payments, regardless of their financial status.
This provision protects Bigfoot Forestry by ensuring franchisees cannot use financial difficulties as a shield against non-performance. It places the risk of financial instability squarely on the franchisee. Prospective franchisees should carefully consider their financial capacity and risk tolerance before investing in a Bigfoot Forestry franchise, as insolvency will not excuse them from their contractual duties.