When are liquidated damages due to Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
ed after we impose the initial fee. |
| TYPE OF FEE 1 | 2, 3 AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Administrative Fee & Expense Reimbursement (if we incur costs to cure a default) | All costs we incur to cure your default plus a 10% administrative fee | 10 days after invoice | If you fail to cure a breach of the Franchise Agreement or our brand standards in the time period we require, we may take steps to cure on your behalf and you must reimburse our costs (examples include failure to maintain insurance, pay suppliers or meet qu |
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, liquidated damages are due 30 days after the invoice date. Bigfoot Forestry may impose liquidated damages if the Franchise Agreement is terminated either because Bigfoot Forestry terminates the agreement due to the franchisee's default, or if the franchisee terminates the agreement in any manner not permitted by the Franchise Agreement.
The amount of liquidated damages can be up to two years of royalty and brand fund fees. This is intended to compensate Bigfoot Forestry for the anticipated future revenue they lose as a result of the early termination.
It is important for a prospective Bigfoot Forestry franchisee to understand the conditions under which liquidated damages may be assessed and to factor this potential cost into their financial planning. Franchisees should carefully review the termination provisions in the Franchise Agreement to understand their rights and obligations, and the potential financial consequences of early termination.