What is the minimum number of months used in the liquidated damages calculation for Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
You must pay us liquidated damages if either: (a) we terminate this Agreement due to your default; or (b) you terminate this Agreement in any manner other than as permitted by §20.1 or §20.3. Liquidated damages are calculated as the product of Average Monthly Fees multiplied by the lesser of (a) 24 or (b) the total number of full months remaining under the Term as of the termination effective date. "Average Monthly Fees" means the combined average monthly royalty fee and brand fund fee (without regard to any fee waivers or other reductions, and regardless of collection) imposed by this Agreement during the 12-month period preceding the termination date (or during the period of time you operated the Business if less than 12 months).
Liquidated damages are due 30 days after we send you an invoice detailing our calculation of same.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, liquidated damages are calculated using the lesser of 24 months or the total number of full months remaining under the franchise term. This calculation is used if Bigfoot Forestry terminates the agreement due to the franchisee's default, or if the franchisee terminates the agreement in a manner not permitted by the agreement.
"Average Monthly Fees" are defined as the combined average monthly royalty fee and brand fund fee during the 12 months preceding termination (or the period the business operated, if less than 12 months). The liquidated damages are the product of the Average Monthly Fees multiplied by the lesser of 24 months or the remaining months in the term.
For a prospective Bigfoot Forestry franchisee, this means that if the franchise agreement is terminated early, the franchisee may owe liquidated damages to Bigfoot Forestry. The minimum number of months that could be used in this calculation is not explicitly stated, but it is implied that if there are less than 24 months remaining in the term, the calculation will use the number of months remaining. The liquidated damages are due 30 days after Bigfoot Forestry sends an invoice detailing the calculation.