Is the Bigfoot Forestry agreement binding on successors?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
7. TRANSFERS
- 7.1. 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 the performance of our obligations under this Agreement up to the effective date of the assignment.
- 7.2. By You. The rights and duties created by this Agreement are personal to you and the Owners. We are granting you area development 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:
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 fully assignable by Bigfoot Forestry without prior notice to the franchisee. The agreement shall benefit any assignees or other legal successors to Bigfoot Forestry's interest in the agreement. However, Bigfoot Forestry remains liable for obligations incurred before the assignment's effective date. This means that if Bigfoot Forestry sells the franchise system or merges with another company, the new entity will assume the rights and responsibilities of Bigfoot Forestry under the existing franchise agreements.
For a prospective franchisee, this clause ensures that the franchise agreement remains in effect even if the ownership of Bigfoot Forestry changes. The franchisee's rights and obligations will continue under the new management. However, it's important to note that while Bigfoot Forestry can assign the agreement, they remain liable for any obligations they had before the assignment. This provides some protection to the franchisee in case of issues arising from Bigfoot Forestry's actions prior to the transfer.
This is a fairly standard clause in franchise agreements, as it allows the franchisor to sell or transfer the business without disrupting the franchise network. However, franchisees should carefully review the terms of the assignment to understand their rights and obligations in the event of a transfer. It is also important to remember that, according to the FDD, the franchisee's rights and duties are personal and require franchisor approval for any transfer by the franchisee.