Are the representations made by the developer and owners of Bigfoot Forestry applicable to their affiliates?
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 the 2025 Bigfoot Forestry Franchise Disclosure Document, the representations made by the developer and owners do extend to their affiliates in certain contexts, particularly concerning breaches of agreements and indemnity obligations. Specifically, if a developer, owner, or their affiliate breaches any 'Definitive Agreement' or an agreement with a third party, they are obligated to indemnify Bigfoot Forestry and related parties. This means they must protect Bigfoot Forestry from any losses or expenses resulting from such breaches.
Furthermore, the indemnity clause in the Bigfoot Forestry franchise agreement explicitly states that the developer and owners are responsible for the actions of their affiliates. This includes breaches of agreements and misrepresentations made during a transfer of ownership. This provision ensures that Bigfoot Forestry is protected from potential liabilities arising from the conduct of the developer, the owners, and their associated entities.
In practical terms, this means that if a Bigfoot Forestry area developer's affiliated company makes a false statement to a potential buyer during the sale of the franchise, the developer is responsible for covering any resulting losses incurred by Bigfoot Forestry. Similarly, if an affiliate violates a contract with a supplier, the developer must indemnify Bigfoot Forestry against any damages. This broad indemnity provision underscores the importance of ensuring that all affiliated entities act responsibly and in compliance with all applicable agreements to avoid triggering indemnity obligations for the developer and owners.