What agreement must a transferring Bigfoot Forestry franchisee make regarding the transferee's financial obligations?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, if a franchisee seeks to transfer their rights and duties under the franchise agreement, the transferee must agree to guarantee and perform the transferring franchisee's obligations under the existing agreement. This requirement is in place to ensure that the financial responsibilities and other commitments of the original franchisee are upheld by the new franchisee.

This condition is one of several that Bigfoot Forestry requires for approval of a transfer. These conditions include that the franchisor believes the proposed transferee has sufficient business experience, aptitude, and financial resources to operate the Bigfoot Forestry business. The transferring franchisee must also be in full compliance with all definitive agreements. The transferee's owners must also complete the initial training program and pay any applicable training fee.

In addition to the transferee's agreement to guarantee the transferring franchisee's obligations, either the transferring franchisee or the transferee must pay Bigfoot Forestry a $10,000 transfer fee. The transferring franchisee must also assign all franchise agreements to the transferee and sign a general release. Bigfoot Forestry also retains the right to first refusal, meaning they can choose to purchase the franchise instead of approving the transfer.

These transfer conditions are typical in franchising to protect the brand and ensure that new franchisees are qualified and committed. A prospective franchisee should carefully consider these requirements and the associated costs before deciding to sell their Bigfoot Forestry franchise.