What conditions must be satisfied for Bigfoot Forestry to approve a transfer?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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
- (e) you or the transferee pay us a $10,000 transfer fee (in addition to the transfer fee, you must reimburse us for any commission we pay our broker if our broker finds the transferee);
- (f) you assign all Franchise Agreements to the transferee in accordance with the transfer provisions under each such Franchise Agreement, including payment of any transfer fee imposed under each such Franchise Agreement;
- (g) you and your Owners sign a General Release;
- (h) we choose not to exercise our right of first refusal described in §7.5; and
- (i) you or the transferring Owner, as applicable, and the transferee satisfy all other conditions we reasonably require as a condition to our approval of the Transfer.
You may not: (a) transfer less than all development rights remaining under this Agreement (i.e., you may not retain the right to develop any Bigfoot Forestry Business); or (b) transfer your development rights to multiple transferees. Our consent to a Transfer shall not constitute a waiver of any Claims we may have against the transferor or our right to demand the transferee comply with all terms of the area development agreement.
- 7.3. Permitted Transfers. You may engage in a Permitted Transfer without our prior approval, but you must: (a) give us at least 10 days' prior notice; and (b) upon our request, cause the former Developer Entity to sign a corporate guarantee in the format we require to secure performance of the new Developer Entity's financial obligations under all Definitive Agreements (if the Permitted Transfer results in a new Developer Entity).
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, transferring ownership requires franchisor approval, which will not be unreasonably withheld if certain conditions are met. These conditions include the transferee demonstrating sufficient business experience, aptitude, and financial resources to operate a Bigfoot Forestry business and meeting the franchisor's minimum criteria for franchisees. The current franchisee must also be in full compliance with all Definitive Agreements.
Additionally, the transferee's owners must successfully complete or make arrangements to attend the initial training program and pay any applicable training fee. The transferee and its owners must also obtain all licenses and permits required by applicable law to operate the Bigfoot Forestry Business. The transferee must agree to guarantee and perform the current franchisee's obligations under the existing agreement.
Furthermore, the franchisee or transferee must pay a $10,000 transfer fee, and reimburse Bigfoot Forestry for any commission paid to their broker if the broker found the transferee. All Franchise Agreements must be assigned to the transferee according to the transfer provisions of each agreement, including any transfer fees. The franchisee and owners must sign a General Release, and Bigfoot Forestry must not exercise its right of first refusal. Finally, both the transferring party and the transferee must satisfy any other conditions reasonably required by Bigfoot Forestry for approval of the transfer.
It is important to note that a franchisee cannot transfer less than all development rights and cannot transfer rights to multiple transferees. Consent to a transfer does not waive any claims Bigfoot Forestry may have against the transferor, nor does it negate the transferee's obligation to comply with the area development agreement. A franchisee can engage in a Permitted Transfer without prior approval, provided they give at least 10 days' notice and ensure the new Developer Entity signs a corporate guarantee if requested.