Can the equity interest requirement for the Managing Owner of a Bigfoot Forestry franchise be waived?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate an Owner with primary responsibility for the management and operation of your Business (the "Managing Owner"). We strongly recommend, but do not require, that you adhere to an owner-operator model whereby the Managing Owner: (a) remains actively and personally involved with the operation of your Business on a full-time basis; and (b) travels to job sites for purposes of providing Bigfoot Forestry Services, managing projects and supervising Service Technicians (if any). However, we do permit you to hire a Project Manager in accordance with §8.2 to assume these responsibilities from the Managing Owner. Either the Managing Owner or a Project Manager be present at each job site for purposes of providing Bigfoot Forestry Services, managing the project and supervising Service Technicians. The Managing Owner must: (a) be approved by us; (b) successfully complete all training programs we require; (c) dedicate either (i) full-time efforts to the Business (if you adhere to an owner-operator model) or (ii) commercially reasonable efforts to the Business (if you hire a Project Manager); (d) at all times own
- at least 20% of the Equity Interests in the Business or Franchisee Entity unless we waive this requirement; and (e) have binding decision-making authority on matters involving your Business.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the requirement for the Managing Owner to hold at least 20% of the equity interest in the business or franchisee entity can be waived by Bigfoot Forestry. The Managing Owner is the designated owner with primary responsibility for managing and operating the Bigfoot Forestry business.
This waiver provides some flexibility for prospective franchisees. While Bigfoot Forestry recommends an owner-operator model, it permits hiring a Project Manager to handle day-to-day operations. If a Project Manager is hired, the Managing Owner needs to dedicate only commercially reasonable efforts to the business, instead of full-time efforts.
Even if the equity requirement is waived, the Managing Owner must still be approved by Bigfoot Forestry and have binding decision-making authority for the business. This ensures that, regardless of equity stake or operational involvement, the Managing Owner retains ultimate control and accountability for the Bigfoot Forestry franchise.