What constitutes a 'Prohibited Activity' for a Bigfoot Forestry franchisee?
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, a 'Prohibited Activity' includes several actions that a franchisee must avoid to remain in compliance with the franchise agreement. These activities are designed to protect the brand, its reputation, and the business interests of both the franchisor and other franchisees within the Bigfoot Forestry system.
Specifically, a franchisee is prohibited from owning, operating, or having any vested interest in a competing business. However, there is an exception: a franchisee can own less than 5% of the equity interests in a competing business if that business is a publicly-traded company. Additionally, franchisees are barred from making disparaging or negative comments about Bigfoot Forestry, its affiliates, the overall system, or any other Bigfoot Forestry business. This restriction does not prevent a franchisee from disclosing truthful information to governmental authorities.
Furthermore, franchisees are prohibited from diverting or attempting to divert business away from Bigfoot Forestry, its affiliates, or other franchisees. They are also not allowed to induce any person to transfer their business from a Bigfoot Forestry Business to a competitor. Engaging in any of these 'Prohibited Activities' can have serious consequences, potentially leading to breach of contract and loss of the franchise.