What constitutes a 'Prohibited Activity' in the context of a Bigfoot Forestry franchise agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
"Prohibited Activities" means and includes any of the following: (a) owning, operating or having any other interest (e.g., as a director, officer, employee, manager, consultant, creditor, representative, agent or in any similar capacity) in a Competing Business, other than owning less than 5% of the Equity Interests in a Competing Business that is a publicly-traded company; (b) disparaging or otherwise making negative comments about us, our affiliate, the System or any Bigfoot Forestry Business (this provision does not prohibit disclosure of truthful information to Governmental Authorities); (c) diverting or attempting to divert any business from us, our affiliate or another franchisee; and/or (d) inducing any Person to transfer their business from a Bigfoot Forestry Business to a competitor.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, 'Prohibited Activities' are specifically defined within the franchise agreement to protect the brand and prevent unfair competition. These activities include owning, operating, or having any interest in a competing business, whether as a director, officer, employee, or consultant. However, owning less than 5% of the equity interests in a publicly-traded competing company is an exception.
Additionally, disparaging Bigfoot Forestry, its affiliates, the System, or any Bigfoot Forestry Business is considered a prohibited activity. This restriction does not prevent franchisees from disclosing truthful information to governmental authorities. Diverting or attempting to divert business away from Bigfoot Forestry, its affiliates, or other franchisees is also prohibited, as is inducing anyone to transfer their business from a Bigfoot Forestry Business to a competitor.
These restrictions are in place to ensure that franchisees remain committed to the Bigfoot Forestry system and do not use their knowledge or resources gained as a franchisee to harm the brand or unfairly compete with other franchisees within the system. Prospective franchisees should carefully consider these restrictions and how they might impact their future business endeavors before entering into a franchise agreement with Bigfoot Forestry.