What is the definition of 'Competing Business' in the context of the Bigfoot Forestry franchise agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Competing Business" means any business that meets at least one of the following criteria: (a) any business that derives, or is reasonably expected to derive, at least 51% of its total gross sales from the sale of forestry mulching services; (b) any business that solicits, offers or sells franchises or licenses for a business
that meets the criteria in clause (a) of this definition; and/or (c) 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 criteria in clause (a) of this definition. A Competing Business does not include any Bigfoot Forestry Business operated pursuant to a valid franchise agreement or license agreement with us or our affiliate.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, a 'Competing Business' is defined with specific criteria related to forestry mulching services. It includes any business that derives, or is reasonably expected to derive, at least 51% of its total gross sales from the sale of forestry mulching services. This definition focuses on the primary revenue source of the business.
The definition also extends to businesses that are involved in franchising or licensing other businesses that meet the initial criteria of deriving a majority of their revenue from forestry mulching services. This part of the definition aims to prevent franchisees from indirectly supporting competing businesses through franchising or licensing arrangements. Furthermore, it encompasses businesses that provide services, training, support, consultation, or advice to other businesses involved in forestry mulching. This is designed to prevent franchisees from using their knowledge and experience gained from Bigfoot Forestry to aid competing businesses.
However, the definition of 'Competing Business' specifically excludes any Bigfoot Forestry Business that operates under a valid franchise or license agreement with Bigfoot Forestry or its affiliates. This clarifies that franchisees within the Bigfoot Forestry system are not considered competing businesses. This definition is important for franchisees as it outlines the scope of activities they are restricted from engaging in, both during their franchise agreement and potentially after, depending on non-compete clauses.