What constitutes a 'Competing Business' for a Bigfoot Forestry franchisee?

According to the 2025 Bigfoot Forestry Franchise Disclosure Document, a 'Competing Business' is defined with specific criteria. It includes any business that derives, or is reasonably expected to derive, at least 51% of its total gross sales from forestry mulching services. This definition focuses on the primary revenue source of the business.

Additionally, a 'Competing Business' encompasses any entity that solicits, offers, or sells franchises or licenses for a business that meets the above 51% revenue criterion. This part of the definition aims to prevent franchisees from being involved in the expansion of competing forestry mulching businesses through franchising or licensing. It also includes any business that services, trains, supports, consults with, advises, or otherwise assists any person with respect to the development, management, and/or operation of a business that meets the 51% revenue criteria. This is a broad clause that captures businesses indirectly involved in supporting competing forestry mulching operations.

However, the definition explicitly excludes any Bigfoot Forestry Business operated under a valid franchise or license agreement with Bigfoot Forestry or its affiliates. This ensures that franchisees within the Bigfoot Forestry system are not considered 'Competing Businesses' to each other. This definition is important for franchisees to understand, as engaging in prohibited activities related to a 'Competing Business' can have consequences under the franchise agreement, especially concerning non-competition covenants and potential extensions of restricted periods.