What consideration is given for Bigfoot Forestry's consent to the transfer of the franchise agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
ment agreement (unless we, in our sole discretion, instruct you to assign this Agreement to the transferee) except that: (i) the Term shall be the Term remaining under this Agreement; (ii) the transferee need not pay a separate development fee; and (iii) the Development Schedule and Development Territory shall be the same Development Schedule and Development Territory specified in this Agreement (modified to reflect the development obligations satisfied prior to the Transfer);
- (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,
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the franchisor's consent to a transfer of the franchise agreement is contingent upon several conditions. The franchisee or the transferee must pay Bigfoot Forestry a $10,000 transfer fee. If Bigfoot Forestry uses a broker to find a transferee, the franchisee must reimburse Bigfoot Forestry for any commission paid to the broker. The franchisee must also assign all franchise agreements to the transferee according to the transfer provisions in each agreement, including paying any applicable transfer fees.
Additionally, the franchisee and their owners must sign a General Release, which is Bigfoot Forestry's current form of Waiver and Release of Claims. Bigfoot Forestry must also choose not to exercise its right of first refusal. Finally, the franchisee or transferring owner, as well as the transferee, must satisfy any other conditions that Bigfoot Forestry reasonably requires for approval of the transfer.
The Bigfoot Forestry FDD also specifies that the franchisee cannot transfer less than all development rights, meaning they cannot retain the right to develop any Bigfoot Forestry Business. Furthermore, development rights cannot be transferred to multiple transferees. Bigfoot Forestry's consent to a transfer does not waive any claims they may have against the transferor, nor does it waive their right to demand compliance from the transferee with all terms of the area development agreement.
However, a ‘Permitted Transfer’ can occur without prior approval from Bigfoot Forestry, provided that the franchisee gives at least 10 days' prior notice. 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 interests, or transfers of less than 20% of the equity interests in the Development Business or Developer Entity. If the Permitted Transfer results in a new Developer Entity, the former Developer Entity must sign a corporate guarantee to secure the new entity's financial obligations under all Definitive Agreements, if requested by Bigfoot Forestry. All parties involved, including the transferee, must sign all documents reasonably requested by Bigfoot Forestry to effectuate and document the Permitted Transfer.