What conditions must be met for a 'Transfer' to be considered a 'Permitted Transfer' for a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
directly or indirectly through one or more intermediaries owns an Equity Interest in the Development Business or Developer Entity; (c) the Person directly signs a Franchise Agreement as the franchisee, either alone or in conjunction with one or more other Persons; and/or (d) the Person directly or indirectly through one or more intermediaries owns an Equity Interest in any affiliate of yours that executes a Franchise Agreement as authorized by §6.
- "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.
- "Term" means the period of time beginning on the Effective Date of this Agreement and expiring on the earlier to occur of: (a) the opening date listed in the Development Schedule for the last Bigfoot Forestry Business you are required to open;
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, a 'Permitted Transfer' is a transfer that meets specific conditions and can be executed without prior approval from Bigfoot Forestry.
Specifically, a 'Permitted Transfer' includes transfers (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. However, even if one of these conditions is met, it is not considered a 'Permitted Transfer' if the Managing Owner ends up owning less than 20% of the Equity Interests in the Development Business or Developer Entity.
Even though prior approval is not required for a Permitted Transfer, the franchisee must still give Bigfoot Forestry at least 10 days' prior notice. Additionally, if the transfer results in a new Developer Entity, Bigfoot Forestry can request the former Developer Entity to sign a corporate guarantee to secure the new entity's financial obligations under all Definitive Agreements. The franchisee and owners must also sign all documents Bigfoot Forestry reasonably requests to complete and document the Permitted Transfer.