What does the Bigfoot Forestry agreement define as 'Prohibited Activities'?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
"Prohibited Activities" means and includes any of the following: (a) owning, operating or having any other interest (e.g., as a director, officer, employee, manager, consultant, creditor, representative, agent or in any similar capacity) in a Competing Business, other than owning less than 5% of the Equity Interests in a Competing Business that is a publicly-traded company; (b) disparaging or otherwise making negative comments about us, our affiliate, the System or any Bigfoot Forestry Business (this provision does not prohibit disclosure of truthful information to Governmental Authorities); (c) diverting or attempting to divert any business from us, our affiliate or another franchisee; and/or (d) inducing any Person to transfer their business from a Bigfoot Forestry Business to a competitor.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, "Prohibited Activities" are specifically defined within the franchise agreement to protect the brand and prevent unfair competition. These activities include several key restrictions that a franchisee must adhere to both during their time as an owner and during the restricted period after leaving the franchise.
Owning or operating any interest in a competing business is prohibited, with a minor exception for owning less than 5% of the equity interests in a publicly-traded company. This prevents franchisees from directly engaging in businesses that could draw customers or resources away from Bigfoot Forestry. Franchisees are also barred from making disparaging or negative comments about Bigfoot Forestry, its affiliates, the system, or any Bigfoot Forestry business. However, this does not prevent the disclosure of truthful information to governmental authorities, ensuring franchisees can comply with legal obligations.
Furthermore, franchisees are prohibited from diverting or attempting to divert business away from Bigfoot Forestry, its affiliates, or other franchisees. This clause ensures that franchisees actively work to grow their own business within the Bigfoot Forestry system rather than undermining it. Lastly, franchisees cannot induce any person to transfer their business from a Bigfoot Forestry Business to a competitor, reinforcing the commitment to maintaining and supporting the existing network of franchisees.
These restrictions are typical in franchise agreements to protect the franchisor's brand, customer base, and overall system integrity. Prospective Bigfoot Forestry franchisees should carefully consider these limitations and how they might impact their future business activities, especially if they have prior experience or interests in related industries.