Does the definition of 'Owner' for Bigfoot Forestry include indirect ownership through intermediaries?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Owner" means a Person who either: (a) directly signs this Agreement as the franchisee, either alone or in conjunction with one or more other Persons; or (b) directly or indirectly through one or more intermediaries owns an Equity Interest in the Business or Franchisee Entity.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the definition of 'Owner' includes those who have direct or indirect ownership through intermediaries. Specifically, an 'Owner' is defined as someone who either directly signs the Franchise Agreement as the franchisee, alone or with others, or someone who directly or indirectly owns an Equity Interest in the Business or Franchisee Entity through one or more intermediaries.
This definition has significant implications for prospective franchisees. It means that not only individuals who directly sign the agreement are considered owners, but also any person or entity that holds an ownership stake in the franchise business, even if that stake is held through multiple layers of ownership. This is a common practice in franchising, as it allows for flexibility in structuring the ownership of the franchise.
For example, if a franchisee sets up a holding company to own the franchise, the individuals who own the holding company would also be considered 'Owners' under the agreement. This is important because Bigfoot Forestry will likely require all Owners to meet certain qualifications, sign certain documents (such as a General Release in connection with a Transfer), and be subject to certain obligations under the Franchise Agreement. Therefore, prospective franchisees need to be aware of who qualifies as an 'Owner' and ensure that all Owners are prepared to meet the franchisor's requirements.
Furthermore, the definition of 'Equity Interest' also includes direct or indirect ownership or beneficial interest in the capital stock of, partnership or membership interest in, or other equity, ownership or beneficial interest in a business or Entity (including voting rights). This broad definition ensures that all forms of ownership are covered, regardless of how they are structured. This comprehensive approach protects Bigfoot Forestry's interests by ensuring that all individuals with a financial stake in the franchise are accountable for its performance and compliance with the Franchise Agreement.