Under what circumstance might the Bigfoot Forestry Franchise Agreement and Supplemental Agreements provide for termination?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
8.1. By Us. We may terminate this Agreement, effective upon delivery of a notice of termination, for any of the following reasons, all of which constitute material events of default and "good cause" for termination, and without opportunity to cure except for any cure period expressly set forth below:
- (a) if we terminate any Definitive Agreement due to a default committed by you or one of your Owners or affiliates; or
- (b) if you (or an Owner) breach any provision of this Agreement and fail to cure within 30 days after receipt of a default notice.
8.2. By Mutual Agreement. If you and we mutually agree in writing to terminate this Agreement, any notice or cure period that might otherwise apply shall be deemed waived.
9. EFFECT OF TERMINATION. Termination of this Agreement ends all your rights and development obligations under this Agreement, including your interests in the Development Territory and right to sign new Franchise Agreements or open new Bigfoot Forestry Businesses. We will not refund any portion of the development fee.
10. DISPUTE RESOLUTION. Any Dispute between the parties relating to this Agreement shall be resolved pursuant to the dispute resolution provisions in the Initial Franchise Agreement. All such dispute resolution provisions are incorporated herein by reference as if fully set forth in this Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, the Development Agreement can be terminated under certain conditions. Bigfoot Forestry may terminate the agreement if the franchisee or one of their owners or affiliates defaults under any Definitive Agreement, which includes the Development Agreement, Area Development Agreement, Franchise Agreement, and related ancillary agreements. This termination is effective immediately upon delivery of a notice and is considered a material event of default and "good cause" for termination, without an opportunity to cure unless a cure period is expressly provided.
Additionally, Bigfoot Forestry can terminate the Development Agreement if the franchisee (or an owner) breaches any provision of the agreement and fails to cure the breach within 30 days after receiving a default notice. This allows the franchisee a limited time to correct any violations of the agreement before termination occurs.
Furthermore, the Development Agreement can be terminated by mutual written agreement between Bigfoot Forestry and the franchisee. In this case, any notice or cure periods that might otherwise apply are waived, providing a more streamlined process for ending the agreement if both parties concur. Upon termination, all rights and development obligations of the franchisee under the Development Agreement cease, including interests in the Development Territory and the right to sign new Franchise Agreements or open new Bigfoot Forestry Businesses, and no portion of the development fee will be refunded.