Under what conditions must a Bigfoot Forestry franchisee pay liquidated damages?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 11.16.Failure to Comply with Standards. You acknowledge the importance of every one of our standards and operating procedures to the reputation and integrity of the System and goodwill associated with the Marks. If we notify you of a breach of our standards or operating procedures (including failure to submit required reports in a timely manner) and you fail to cure within the time period we presc
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, franchisees may face financial penalties for failing to meet brand standards or rectify non-compliance issues. If Bigfoot Forestry notifies a franchisee of a breach in standards or operating procedures, including the failure to submit required reports on time, and the franchisee does not correct the issue within the given timeframe, Bigfoot Forestry may impose a noncompliance fee.
The initial noncompliance fee is $500 per occurrence. Furthermore, if the same noncompliance issue remains unresolved after the initial fee is imposed, Bigfoot Forestry may charge an additional $100 fee every 48 hours until the issue is resolved.
These fees serve as a form of liquidated damages, compensating Bigfoot Forestry for the potential harm to its brand reputation and the integrity of its system due to a franchisee's failure to adhere to established standards. This is a fairly common practice in franchising, as franchisors rely on consistent quality and operational standards across all locations to maintain brand value. Prospective franchisees should understand these potential costs and ensure they have systems in place to comply with all standards and reporting requirements.