Can Bigfoot Forestry impose sourcing and supplier restrictions on franchisees from time to time?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
You must only purchase goods and services that satisfy all standards and specifications we designate.
You must comply with all sourcing and supplier restrictions we impose from time to time.
- (b) System Suppliers.
In accordance with the Manual, you must purchase certain goods and services exclusively from suppliers we designate or approve.
The Manual may designate us or our affiliate as a designated or approved supplier.
We and our affiliates may generate a profit from these purchases.
Our right to specify the suppliers you use is necessary so we can control the uniformity and quality of goods and services used, sold or distributed in connection with the development and operation of Bigfoot Forestry Businesses, protect our trade secrets, negotiate bulk purchase discounts and protect the reputation and goodwill associated with our System and Marks.
You must immediately discontinue purchasing from any supplier we disapprove.
- (c) Approval Process.
If you wish to purchase alternative goods or services or purchase from alternative suppliers, you must send us a request for approval that: (i) identifies the proposed supplier and the goods/services to be purchased; (ii) includes all information we require about the goods/services and the supplier (including the supplier's qualifications, reputation, financial strength and production capabilities); and (iii) includes product samples for examination and testing purposes.
We may condition our approval on the supplier's agreement to comply with our minimum insurance, indemnification and confidentiality requirements for system suppliers.
We will approve or disapprove your request within 30 days after we receive all required information and samples.
Your request is deemed disapproved if we fail to issue our approval within the 30-day period.
You must reimburse all costs we incur to review suppliers or goods/services you propose.
We need not consider substitute goods or alternative suppliers for goods that are proprietary or branded with our Marks.
- (d) Payment Disputes.
You understand that: (i) your failure to timely pay a system supplier may jeopardize the supplier's relationship with us and other franchisees; and (ii) a supplier's termination of its relationship with us or refusal to supply goods or services to our franchisees may cause significant harm to us and our franchisees.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees must adhere to sourcing and supplier restrictions imposed by the company. Specifically, franchisees must purchase goods and services that meet Bigfoot Forestry's standards and specifications and comply with any sourcing and supplier restrictions that Bigfoot Forestry implements. Franchisees are required to buy certain goods and services exclusively from suppliers that Bigfoot Forestry designates or approves, and Bigfoot Forestry or its affiliates may profit from these purchases.
Bigfoot Forestry states that these supplier restrictions are necessary to maintain uniformity and quality across all Bigfoot Forestry businesses, protect trade secrets, negotiate bulk discounts, and safeguard the brand's reputation. Franchisees must immediately stop purchasing from any supplier that Bigfoot Forestry disapproves.
If a franchisee wants to use alternative suppliers or goods, they must request approval from Bigfoot Forestry. This request must include detailed information about the proposed supplier and goods, including qualifications, reputation, financial strength, production capabilities, and product samples. Bigfoot Forestry has 30 days to approve or disapprove the request after receiving all necessary information and samples; failure to respond within this period means the request is deemed disapproved. The franchisee is responsible for reimbursing Bigfoot Forestry for all costs incurred in reviewing proposed suppliers or goods. Bigfoot Forestry does not need to consider substitutes for proprietary or branded goods.
Furthermore, the FDD states that a franchisee's failure to pay a system supplier on time could harm the supplier's relationship with Bigfoot Forestry and other franchisees. Termination of a supplier relationship or refusal to supply goods or services to Bigfoot Forestry franchisees may significantly harm Bigfoot Forestry and its franchisees.