Is the Bigfoot Forestry agreement binding on the assigns of the parties involved?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
19. TRANSFERS
- 19.1. By Us. This Agreement is fully assignable by us (without prior notice to you) and shall inure to the benefit of any assignee(s) or other legal successor(s) to our interest in this Agreement, provided that we shall, subsequent to any such assignment, remain liable for any obligations incurred by us prior to the effective date of the assignment. We may also delegate our obligations under this Agreement to one or more Persons without assigning the Agreement.
- 19.2. By You. The rights and duties created by this Agreement are personal to you and the Owners. We are granting you franchise rights in reliance upon the character, skill, attitude, business ability and financial resources of you and your Owners. Because this Agreement is a personal services contract, neither you nor any Owner may engage in a Transfer (other than a Permitted Transfer) without our prior approval. Any Transfer (other than a Permitted Transfer) without our approval is void and constitutes a breach of this Agreement. We will not unreasonably withhold our approval of a proposed Transfer if all of the following conditions are satisfied:
- (a) we believe the proposed transferee has sufficient business experience, aptitude and financial resources to own and operate a Bigfoot Forestry Business and meets our minimum criteria for franchisees;
- (b) you and your affiliates and Owners are in full compliance with all Definitive Agreements;
- (c) the transferee's owners successfully complete, or make arrangements to attend, the initial training program and the transferee pays us any applicable training fee;
- (d) the transferee and its owners obtain all licenses and permits required by applicable Law to own and operate the Bigfoot Forestry Business;
- (e) the transferee: (i) agrees to guarantee and perform your obligations under this Agreement and
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the franchise agreement is assignable by the franchisor, Bigfoot Forestry. The agreement inures to the benefit of any assignee or legal successor to Bigfoot Forestry's interest in the agreement. However, Bigfoot Forestry remains liable for any obligations incurred before the assignment's effective date. Bigfoot Forestry may also delegate its obligations without assigning the agreement itself.
For the franchisee, the rights and duties are personal to the franchisee and the owners. Bigfoot Forestry grants franchise rights based on the character, skill, attitude, business ability, and financial resources of the franchisee and their owners. Due to the agreement being a personal services contract, franchisees cannot engage in a transfer without prior approval from Bigfoot Forestry. Any transfer without approval is considered void and a breach of the agreement.
Bigfoot Forestry will not unreasonably withhold approval of a proposed transfer if certain conditions are met. These conditions include the proposed transferee having sufficient business experience, aptitude, and financial resources, the franchisee and owners being in full compliance with all definitive agreements, the transferee's owners completing the initial training program, and the transferee obtaining all required licenses and permits. The transferee must also agree to guarantee and perform the franchisee's obligations under the agreement.