What are the conditions that would disqualify a transfer from being considered a 'Permitted Transfer' for a Bigfoot Forestry business?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Permitted Transfer" means a Transfer: (a) between existing Owners; (b) by the Owners to a new Developer Entity for which such Owners collectively own and control 100% of the Equity Interests; or (c) of less than 20% of the Equity Interests in the Development Business or Developer Entity; provided, however, that a Permitted Transfer does not include any Transfer that results in the Managing Owner owning less than 20% of the Equity Interests in the Development Business or Developer Entity.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, a 'Permitted Transfer' has specific conditions, and failure to meet these conditions means the transfer is not considered 'Permitted.' A transfer is not 'Permitted' if it results in the Managing Owner owning less than 20% of the equity interests in the Development Business or Developer Entity.
Specifically, a 'Permitted Transfer' includes transfers between existing owners, transfers by owners to a new Developer Entity where the owners collectively own and control 100% of the equity, or transfers of less than 20% of the equity interests in the business. However, even if a transfer falls into one of these categories, it is not 'Permitted' if the Managing Owner ends up with less than 20% equity.
This condition is important because it ensures that the Managing Owner maintains a significant stake in the Bigfoot Forestry business, which can help to maintain stability and commitment to the franchise. Prospective franchisees should carefully consider these conditions when planning any future transfers of ownership or equity in their Bigfoot Forestry franchise.