Does Bigfoot Forestry have the exclusive right to contract with National Account customers?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
of the acquired or acquiring company begin using our Intellectual Property (including our Marks) and providing Bigfoot Forestry Services at job sites located in your Territory. As further discussed in §11.5, we have the exclusive right to enter into contracts with National Account customers, including contracts pertaining to Bigfoot Forestry Services involving job sites located in your Territory. Your territorial rights do not prevent us from providing, or authorizing other franchisees to provide, Bigfoot Forestry Services at job sites located in your Territory for National Account customers. We also reserve the right to sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) within the Territory through Alternative Channels of Distribution.
4. TERM AND RENEWAL.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, Bigfoot Forestry retains the exclusive right to contract with National Account customers. This means that while a franchisee may operate within a specific territory, Bigfoot Forestry can directly enter into agreements with national-level clients, even if those clients have job sites within the franchisee's territory. The franchisee is generally prohibited from directly soliciting or contracting with National Account customers without prior approval from Bigfoot Forestry.
This arrangement has significant implications for prospective franchisees. While franchisees benefit from an exclusive territory where Bigfoot Forestry will not establish competing franchises, this territorial protection does not extend to National Accounts. Bigfoot Forestry can provide or authorize other franchisees to provide services to these National Account customers within a franchisee's territory. This could limit a franchisee's potential revenue if large national clients operate within their territory.
Furthermore, the FDD states that franchisees may not directly contract with National Account customers or provide Bigfoot Forestry Services involving job sites owned by National Account customers unless they obtain prior approval from Bigfoot Forestry. This restriction underscores Bigfoot Forestry's control over these key accounts and the franchisee's dependence on securing approval to serve them. It is important for potential franchisees to understand how National Accounts are defined, the process for obtaining approval to work with them, and the potential impact on their business's revenue and growth.
Therefore, a prospective franchisee should clarify the definition of "National Account customers" with Bigfoot Forestry. Understanding the criteria used to classify these accounts is crucial for assessing the potential impact on their business. Additionally, inquiring about the process and criteria for obtaining approval to work with National Accounts will help a franchisee understand the potential limitations and opportunities within their territory.