What actions are considered a 'Transfer' under the Bigfoot Forestry Area Development Agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
"Transfer" means any direct or indirect, voluntary or involuntary, assignment, sale, conveyance, subdivision, sublicense or other transfer or disposition of:
(a) this Agreement (or any interest therein);
(b) the area development rights granted by this Agreement (or any interest therein);
(c) the Development Business you conduct pursuant to this Agreement (or any interest therein);
(d) the right to manage a Bigfoot Forestry Business; or
(e) an Equity Interest in the Development Business or Developer Entity;
including by: merger or consolidation; judicial award, order or decree; issuance of additional Equity Interests (including public and private offerings); foreclosure of a security interest by a lender; or operation of Law, will or a trust upon an Owner's death (including via the Laws of intestate succession).
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, a 'Transfer' encompasses a broad range of actions related to the Area Development Agreement. Specifically, it includes any direct or indirect, voluntary or involuntary, assignment, sale, conveyance, subdivision, sublicense, or other transfer or disposition of the agreement itself, the area development rights, the Development Business, the right to manage a Bigfoot Forestry Business, or an Equity Interest in the Development Business or Developer Entity.
This definition extends to various methods of transfer, such as mergers or consolidations, judicial awards, orders, or decrees, the issuance of additional Equity Interests (including public and private offerings), foreclosure of a security interest by a lender, or operation of Law, will, or a trust upon an Owner's death, including via the Laws of intestate succession. This comprehensive definition means that franchisees need to be aware of any action that could be interpreted as a change in ownership, control, or rights related to the development agreement.
For a prospective Bigfoot Forestry area developer, this definition is crucial because any transfer without prior approval from Bigfoot Forestry (unless it qualifies as a 'Permitted Transfer') is considered void and a breach of the Area Development Agreement. This highlights the importance of understanding what constitutes a 'Permitted Transfer,' which includes transfers between existing Owners, to a new Developer Entity wholly owned and controlled by the existing Owners, or of less than 20% of the Equity Interests in the Development Business or Developer Entity, provided the Managing Owner retains at least 20% ownership.