What is the implication if the execution of the Bigfoot Forestry agreement breaches another agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- **18.
INDEMNITY.** You agree to indemnify the Indemnified Parties and hold them harmless for, from and against any and all Losses and Expenses they incur as a result of or in connection with:
- (a) the marketing, use or operation of your Bigfoot Forestry Business;
- (b) the breach of any Definitive Agreement committed by you or your Owner or affiliate;
- (c) the breach of an agreement with a third party committed by you or your Owner or affiliate, including a failure to honor a warranty or service guarantee;
- (d) any representations made by you or your Owner to a transferee in connection with a Transfer;
- (e) any Claim relating to taxes or penalties a Governmental Authority assesses against us as a direct result of your failure to pay or perform functions required of you under this Agreement;
- (f) libel, slander or disparaging comments made by you or your Owners, officers, employees or independent contractors regarding the System, a Bigfoot Forestry Business or an Indemnified Party (this provision does not apply to disclosure of truthful information to Governmental Authorities);
- (g) any labor, employment or similar type of Claim pertaining to your employees (including Claims alleging we are a joint employer of your employees) or our relationship with you or your Owners (including Claims alleging we are an employer of you and/or any of your Owners); or
- (h) any actions, investigations, rulings or proceedings conducted by any Governmental Authority (including the United States Department of Labor, Equal Employment Opportunity Commission or National Labor Relations Board) relating to your employees.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, if a franchisee's actions related to their Bigfoot Forestry business lead to a breach of another agreement, they are obligated to indemnify Bigfoot Forestry and its associated parties. This means the franchisee must protect Bigfoot Forestry from any losses or expenses resulting from that breach.
Specifically, the franchisee agrees to cover all losses and expenses incurred by Bigfoot Forestry and related parties if the franchisee, their owner, or an affiliate breaches any agreement with a third party. This includes situations where the franchisee fails to honor a warranty or service guarantee. This obligation to indemnify protects Bigfoot Forestry from financial harm caused by the franchisee's failure to meet their obligations to others.
This requirement is a standard practice in franchising, designed to shield the franchisor from liabilities arising from the franchisee's operations. Prospective Bigfoot Forestry franchisees should carefully review all their existing agreements and ensure they can fulfill their obligations under both those agreements and the Bigfoot Forestry franchise agreement. Failure to do so could result in significant financial liabilities for the franchisee.