Following termination, expiration, or transfer of the Bigfoot Forestry agreement, what post-term covenants must the franchisee comply with?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
ize the foregoing companies to transfer such telephone numbers, domain names and listings to us and you authorize us, and appoint us and any officer we designate as your attorney-in-fact to direct these companies to transfer the telephone numbers, domain names and listings to us if you fail or refuse to do so); and
- (k) provide us with satisfactory evidence of your compliance with the above obligations within 30 days after the effective date of the termination, expiration or Transfer of this Agreement.
Subsections (g), (h), (i) and (j) above do not apply if you Transfer your Business to an approved transferee or we exercise our right to purchase your Business; provided, however, that clause (i) shall apply with respect to any Bigfoot Forestry Vehicle or operating equipment that is not transferred to or acquired by us or another franchisee. If an Owner transfers his or her entire Equity Interest in the Business or Franchisee Entity but you continue to operate the Business pursuant to this Agreement, then this Section will not apply to you (or to any remaining Owner) and the former Owner is subject only to the obligations set forth in subsections (a) and (b).
21.2. Purchase Option.
- (a) Generally. Upon termination or expiration of this Agreement we have the option to purchase your Business and/or its assets. If exercise our purchase option, we will notify you of the assets we wish to purchase (the "Acquired Assets") within 20 days after the termination or expiration date. The purchase price for the Acquired Assets will be: (i) the purchase price established by the parties if mutually agreed upon; or (ii) the Appraised Value established in accordance with §21.2(b) below; provided, however, that any equipment we choose to purchase will be valued at the lesser of (1) fair market value or (2) the depreciated value of the equipment calculated on a straight-line method over its estimated useful life, less any liens or encumbrances. We may, at our option, assign our purchase option to a designee of our choosing.
- (b) Appraisal Process. If the parties cannot agree on the purchase price, the purchase price shall be the Appraised Value established in accordance with this Section.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, several obligations survive the termination, expiration, or transfer of the franchise agreement. Specifically, sections 13, 14, 16, 18, 21, 22 and 24 of the agreement remain in effect after the agreement ends, continuing until they are fully satisfied or naturally expire. These sections likely cover various aspects of the franchise relationship, including but not limited to intellectual property, confidentiality, non-compete obligations, and other general provisions.
One key aspect of these post-termination covenants relates to brand protection. Franchisees must refrain from using Bigfoot Forestry's intellectual property or confidential information in any capacity, ensuring the confidentiality of this information and preventing unauthorized copies or disclosures. This obligation extends to stopping the use of intellectual property and confidential information once the franchisee or their spouse is no longer an owner. Additionally, franchisees are restricted from engaging in any prohibited activities, such as unfair competition, during a specified restricted period.
Furthermore, franchisees are required to provide satisfactory evidence of their compliance with these post-termination obligations within 30 days after the termination, expiration, or transfer of the agreement. However, some of these obligations may not apply if the business is transferred to an approved transferee or if Bigfoot Forestry exercises its right to purchase the business. It is important for potential franchisees to carefully review these sections within the franchise agreement to fully understand the scope and duration of their post-termination obligations and how these might impact their future business activities.