Can Bigfoot Forestry assign the Franchise Agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Bigfoot Forestry can assign the Franchise Agreement. Specifically, the FDD states that the agreement is fully assignable by Bigfoot Forestry without prior notice to the franchisee. However, Bigfoot Forestry remains liable for any obligations incurred before the assignment's effective date. Bigfoot Forestry also has the option to delegate its obligations under the agreement to other parties without assigning the entire agreement.
For a prospective franchisee, this means that the rights and obligations of Bigfoot Forestry under the Franchise Agreement could be transferred to another entity at any time. While Bigfoot Forestry remains responsible for its prior obligations, the franchisee would need to work with the new assignee for ongoing matters. This is a fairly standard clause in franchise agreements, allowing the franchisor flexibility in its business operations.
Conversely, the franchisee's ability to transfer the agreement is restricted. The FDD specifies that the franchisee's rights and duties are personal, based on the franchisee's and their owners' character, skills, and financial resources. Any transfer by the franchisee requires prior approval from Bigfoot Forestry, which will not be unreasonably withheld if certain conditions are met. These conditions include the transferee meeting Bigfoot Forestry's criteria for franchisees, compliance with agreements, completion of training, and obtaining necessary licenses.