When executing the agreement with Bigfoot Forestry, what must the franchisee entity be duly authorized to do?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
6. DEVELOPER ENTITY. You represent that Part A of ATTACHMENT "A" includes a complete and accurate list of your Owners. Upon request, you must send us a resolution of the Developer Entity authorizing the execution of this Agreement, a copy of its organizational documents and a current Certificate of Good Standing. You may form a separate Entity to enter into each Franchise Agreement provided that: (a) the Person or Persons owning the Equity Interests (and the percentage of the Equity Interests owned) in each such Entity must be the same Person or Persons owning the Equity Interests (with the same percentage of the Equity Interests owned) in the Developer Entity; and (b) each such Entity guarantees the performance of all other Entities formed under the authority of this §6. Each Owner, and the spouse of each Owner who is a natural Person, must sign a Franchise Owner Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, if a franchisee forms a separate entity to enter into the Franchise Agreement, the franchisee must provide a resolution of the Developer Entity authorizing the execution of the agreement. Additionally, the franchisee must supply a copy of the entity's organizational documents and a current Certificate of Good Standing.
This requirement ensures that the entity entering into the agreement on behalf of the franchisee is properly authorized to do so, protecting Bigfoot Forestry from potential legal challenges regarding the validity of the agreement. It also confirms that the entity is in good legal standing, meaning it is properly registered and compliant with relevant regulations.
Furthermore, the ownership structure of the franchisee entity must mirror that of the Developer Entity. Specifically, the individuals owning Equity Interests in the franchisee entity, and the percentages of those interests, must be identical to those in the Developer Entity. Each Owner, and the spouse of each Owner who is a natural Person, must sign a Franchise Owner Agreement. This requirement maintains consistency and prevents the transfer of ownership or control without the franchisor's knowledge and consent.