What is the definition of 'Permitted Transfer' for a Bigfoot Forestry franchise?

According to the 2025 Bigfoot Forestry Franchise Disclosure Document, a 'Permitted Transfer' is defined as a transfer that meets specific conditions. These conditions include transfers between existing owners, transfers by the owners to a new business entity that is 100% owned and controlled by the transferring owners, or transfers of less than 20% of the ownership interests in the franchised business.

However, the definition also includes an important exception. A transfer described in the aforementioned conditions (a, b, or c) is not considered a 'Permitted Transfer' if it results in the Managing Owner owning less than 20% of the franchised business. The 'Managing Owner' is defined as the owner appointed and approved by Bigfoot Forestry with primary responsibility for the overall management and operation of the Bigfoot Forestry Business.

In practical terms, this means that franchisees have some flexibility in transferring ownership within their existing ownership structure or to a wholly-owned entity without incurring a transfer fee. They can also transfer a minority stake (less than 20%) without triggering the transfer fee. However, any transfer that dilutes the Managing Owner's stake below 20% will not be considered a 'Permitted Transfer' and may be subject to additional scrutiny or fees from Bigfoot Forestry. This provision ensures that the approved manager maintains a significant stake in the business.

It is important for prospective franchisees to understand these conditions, as transferring a franchise interest typically involves fees and franchisor approval. Bigfoot Forestry's policy allows for certain internal transfers without fees, but any significant change in ownership or management control is likely to be subject to the standard transfer process and associated fees. Franchisees should carefully consider these implications when planning any ownership changes.