Under what conditions would a Bigfoot Forestry franchisee be required to reimburse Bigfoot Forestry for legal fees?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
After the expiration or termination of this Agreement, if we choose to perform, or appoint another franchisee to perform, any warranty work under a warranty issued by you, you agree to indemnify and reimburse us for all amounts we incur in connection with the performance of such
warranty work (including payment of our then-current standard rate for any work performed us or any amount we pay to another franchisee for any work performed by such franchisee).
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, a franchisee may be required to reimburse Bigfoot Forestry for legal fees under specific circumstances related to warranty work. If a Bigfoot Forestry franchisee issues a warranty and subsequently fails to honor it, Bigfoot Forestry has the right to pursue remedies for the franchisee's breach of the agreement.
Specifically, if after the franchise agreement expires or is terminated, Bigfoot Forestry chooses to perform the warranty work itself or appoints another franchisee to do so, the original franchisee is obligated to indemnify and reimburse Bigfoot Forestry. This reimbursement covers all costs incurred by Bigfoot Forestry in connection with performing the warranty work. These costs include Bigfoot Forestry's standard rate for the work performed by its own personnel or any amount Bigfoot Forestry pays to another franchisee for completing the work.
This provision means that a franchisee's responsibility for warranties extends even beyond the termination of the franchise agreement. If a franchisee fails to honor a warranty, Bigfoot Forestry can step in to fulfill the obligation and then seek reimbursement from the former franchisee for all associated expenses. This could potentially create a significant financial burden for the franchisee if substantial warranty work is required after the agreement ends.