Following termination of a Bigfoot Forestry franchise, what post-term covenants must the franchisee comply with?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Intellectual Property and Confidential Information. You agree to: (i) refrain from using the Intellectual Property or Confidential Information in any capacity or for any purpose other than the operation of Franchisee's Bigfoot Forestry Business in compliance with the Franchise Agreement and Manual; (ii) maintain the confidentiality of the Confidential Information at all times; (iii) refrain from making unauthorized copies of documents containing Confidential Information; (iv) take all steps we reasonably require to prevent unauthorized use or disclosure of Confidential Information; and (v) immediately stop using the Intellectual Property and Confidential Information at such time that you are (or your spouse is) no longer an Owner. You agree to assign to us or our designee, without charge, all rights to any Improvement developed by you, including the right to grant sublicenses. If applicable Law precludes you from assigning ownership to us, then you agree to perpetually license the Improvement to us, free of charge, with full rights to use, commercialize and sublicense the same.
- (b) Unfair Competition. You may not engage in any Prohibited Activities at any time: (i) that you are (or your spouse is) an Owner; or (ii) during the Restricted Period. Notwithstanding the foregoing, you may have an interest in a Competing Business during the Restricted Period as long as the Competing Business does not provide competitive services at job sites located in the Restricted Territory. If you engage in any Prohibited Activity during the Restricted Period (other than having an interest in a
Competing Business permitted by this Section) your Restricted Period will be extended by the period of time during which you engaged in the Prohibited Activity. Any such extension of time will not constitute a waiver of your breach or impair any of our rights or remedies relating to your breach. For purposes of clarity, you remain bound by any non-competition covenants in other Definitive Agreements that remain in effect for a period of time that extends beyond the expiration of the Restricted Period under this Agreement, and the expiration of the Restricted Period under this Agreement does not in any way diminish your obligation to comply with such other covenants.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, franchisees are subject to certain post-term covenants to protect the brand's intellectual property, confidential information, and market position. These covenants primarily revolve around refraining from unfair competition and maintaining the confidentiality of sensitive business information.
Specifically, franchisees must not engage in any prohibited activities during the restricted period. However, a franchisee may have an interest in a competing business during the restricted period as long as the competing business does not provide competitive services at job sites located in the restricted territory. If a franchisee engages in any prohibited activity during the restricted period, the restricted period will be extended by the period of time during which the franchisee engaged in the prohibited activity. Franchisees must also refrain from using Bigfoot Forestry's intellectual property or confidential information after the termination of the franchise agreement.
These measures are typical in franchising to prevent former franchisees from leveraging the franchisor's proprietary information and brand recognition to unfairly compete. The restricted period and territory are designed to provide a reasonable buffer for the franchisor to protect its business interests without unduly restricting the former franchisee's ability to earn a living. Prospective franchisees should carefully evaluate the scope and duration of these post-term covenants to understand their obligations and limitations should they decide to exit the Bigfoot Forestry system.