Can Bigfoot Forestry request copies of required reports from franchisees?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
reimburse all Travel Expenses and other costs we incur to conduct an inspection to verify whether you remedied: (a) a health or safety issue identified by a Governmental Authority; or (b) a breach of system standards we bring to your attention. We bear the cost of all other inspections
16.2. Audit. We may audit your books and records at any time. You must fully cooperate with us and any Person we hire to conduct the audit. If an audit reveals an understatement of Gross Sales, you must immediately pay us all additional fees you owe together with any late fee imposed pursuant to §13.4. You must reimburse us for the cost of any audit (including reasonable accounting and attorneys' fees and Travel Expenses incurred by us or the auditor) that: (a) is required due to your failure to provide information we request, preserve records or file reports as required by this Agreement; or (b) reveals
you understated Gross Sales by at least 2%. We bear the cost of all other audits. Your reimbursement of our audit costs does not preclude us from terminating this Agreement.
17. INTELLECTUAL PROPERTY
- 17.1. Ownership & Use. You acknowledge that: (a) we are (or our affiliate is) the exclusive owner of the Intellectual Property and the associated goodwill;
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, Bigfoot Forestry has the right to inspect and audit a franchisee's business operations. Specifically, Bigfoot Forestry can examine and copy a franchisee's books, records, accounts, and tax returns for quality control and compliance purposes. This means Bigfoot Forestry can request and obtain copies of reports franchisees are required to maintain.
Bigfoot Forestry may conduct these inspections at any time without prior notice, except for home office inspections, which require at least 48 hours' notice. Franchisees are obligated to cooperate with these inspections and audits. If a franchisee fails to provide requested information or file required reports, and an audit is necessary as a result, the franchisee must reimburse Bigfoot Forestry for the cost of the audit, including accounting and legal fees, as well as travel expenses.
Furthermore, if an audit reveals an understatement of gross sales, the franchisee must immediately pay all additional fees owed, along with any late fees. Additionally, if Bigfoot Forestry notifies a franchisee of a failure to submit required reports in a timely manner and the franchisee does not correct the issue within the prescribed time, Bigfoot Forestry may impose a noncompliance fee of $500 per occurrence, and an additional $100 fee every 48 hours the issue remains uncured.