What is a condition for Bigfoot Forestry's consent to the transfer of a franchise agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
) 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
related contracts (including customer contracts, supplier contracts, warranty work, service guarantees and service plans); and (ii) signs any agreement we require to confirm the foregoing;
(f) the transferee and its owners sign our then-current form of franchise agreement (unless we instruct you to assign this Agreement to the transferee) except that: (i) the Term and renewal term(s) shall be the Term and renewal term(s) remaining under this Agreement unless we specify otherwise; and (ii) the transferee need not pay a separate initial franchise fee;
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the company's consent to a franchise transfer requires several conditions to be met. Bigfoot Forestry will not unreasonably withhold approval of a proposed transfer if the following conditions are satisfied.
First, Bigfoot Forestry must believe the proposed transferee has sufficient business experience, aptitude, and financial resources to operate the Bigfoot Forestry business and meets the minimum criteria for franchisees. Second, the franchisee, its affiliates, and owners must be in full compliance with all definitive agreements. Third, the transferee's owners must successfully complete the initial training program, or make arrangements to attend, and pay any applicable training fee. Fourth, the transferee and its owners must obtain all required licenses and permits to operate the Bigfoot Forestry business.
Additionally, the transferee must agree to guarantee and perform the obligations under the Franchise Agreement. The franchisee or transferee must pay a $10,000 transfer fee, and reimburse Bigfoot Forestry for any commission paid to a broker if the broker found the transferee. The franchisee must assign all Franchise Agreements to the transferee, including payment of any transfer fee imposed under each Franchise Agreement. The franchisee and its owners must sign a General Release, and Bigfoot Forestry must choose not to exercise its right of first refusal. Finally, the franchisee or transferring owner, and the transferee, must satisfy all other conditions Bigfoot Forestry reasonably requires as a condition to approving the transfer.