Does the definition of 'Acquisition' in the Bigfoot Forestry franchise agreement include acquisitions by merger?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
"Transfer" means any direct or indirect, voluntary or involuntary, assignment, sale, conveyance, subdivision, sublicense or other transfer or disposition of:
- (a) this Agreement (or any interest therein);
- (b) the franchise or intellectual property rights granted by this Agreement (or any interest therein);
- (c) the Business you conduct pursuant to this Agreement (or any interest therein);
- (d) the right to manage the Bigfoot Forestry Business;
- (e) your Business's assets, excluding the sale of equipment in the ordinary course; or
- (f) an Equity Interest in the Business or Franchisee Entity;
including by: merger or consolidation; judicial award, order or decree; issuance of additional Equity Interests (including public and private offerings); foreclosure of a security interest by a lender; or operation of Law, will or a trust upon an Owner's death (including via the Laws of intestate succession).
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, the term 'Transfer' is defined, and this definition is relevant to understanding what constitutes a change in ownership or control of a Bigfoot Forestry franchise. The definition of 'Transfer' includes specific events such as assignment, sale, or conveyance, and it explicitly includes mergers or consolidations.
For a prospective Bigfoot Forestry franchisee, this means that if the franchisee's business is involved in a merger or consolidation, it would be considered a 'Transfer' under the franchise agreement. This is significant because the franchise agreement likely contains provisions that govern transfers, such as requiring franchisor approval, payment of transfer fees, and compliance with certain conditions.
Therefore, a Bigfoot Forestry franchisee needs to be aware that any merger or consolidation involving their business would trigger the transfer provisions of the franchise agreement. It is important to carefully review these provisions to understand the obligations and restrictions associated with such a transaction.