Does the definition of 'Acquisition' in the Bigfoot Forestry franchise agreement include acquisitions by other means?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term we will not develop or operate, or license a third party to develop or operate, a Bigfoot Forestry Business that provides Bigfoot Forestry Services at job sites located in the Development Territory s except as otherwise provided in this Section with respect to Acquisitions and National Accounts. At any time during the Term we reserve the right to engage in Acquisitions, even if as a result of an Acquisition one or more competitive businesses of the acquired or acquiring company begin using our Intellectual Property (including our Marks) and providing Bigfoot Forestry Services at job sites located in the Development Territory. We have the exclusive right to enter into contracts with National Account customers, including contracts pertaining to Bigfoot Forestry Services involving job sites located in the Development Territory. Your territorial rights do not prevent us from providing, or authorizing other franchisees to provide, Bigfoot Forestry Services at job sites located in the Development Territory for National Account customers. We reserve the right to sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) within the Development Territory through Alternative Channels of Distribution.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
Based on the 2025 Bigfoot Forestry Franchise Disclosure Document, the franchisor, Bigfoot Franchising, LLC, retains the right to engage in acquisitions, even if it results in competition within a franchisee's territory. Specifically, Bigfoot Forestry can acquire companies that may compete with existing franchisees, even if those acquired companies start using Bigfoot Forestry's intellectual property and providing similar services within the franchisee's designated territory. This clause is found within the section detailing territorial protections and limitations for area developers.
This reservation of rights regarding acquisitions has significant implications for prospective Bigfoot Forestry franchisees. While franchisees are granted a defined territory, this protection is not absolute. Bigfoot Forestry retains the ability to directly or indirectly introduce competition into that territory through acquisitions. This could potentially dilute a franchisee's market share and revenue, especially if the acquired company already has an established presence in the area.
It is important to note that Bigfoot Forestry also reserves the right to engage in National Accounts, which are contracts with large customers that may involve job sites within a franchisee's territory. The franchisee's territorial rights do not prevent Bigfoot Forestry from providing services to these National Account customers, further emphasizing the limitations on the exclusivity of the granted territory. Additionally, Bigfoot Forestry can sell competitive goods and services through alternative channels of distribution within the Development Territory.
Therefore, while Bigfoot Forestry offers a defined territory, potential franchisees should carefully consider the exceptions and limitations to these territorial protections. The franchisor's ability to engage in acquisitions, pursue National Accounts, and utilize alternative distribution channels could impact the franchisee's business and profitability. Prospective franchisees should seek clarification from Bigfoot Forestry regarding their acquisition strategy and how it might affect individual franchise locations.