Who is the Bigfoot Forestry franchise agreement binding upon?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
19.1. By Us. This Agreement is fully assignable by us (without prior notice to you) and shall inure to the benefit of any assignee(s) or other legal successor(s) to our interest in this Agreement, provided that we shall, subsequent to any such assignment, remain liable for any obligations incurred by us prior to the effective date of the assignment. We may also delegate our obligations under this Agreement to one or more Persons without assigning the Agreement.
- 19.2. By You. The rights and duties created by this Agreement are personal to you and the Owners. We are granting you franchise rights in reliance upon the character, skill, attitude, business ability and financial resources of you and your Owners. Because this Agreement is a personal services contract, neither you nor any Owner may engage in a Transfer (other than a Permitted Transfer) without our prior approval. Any Transfer (other than a Permitted Transfer) without our approval is void and constitutes a breach of this Agreement. We will not unreasonably withhold our approval of a proposed Transfer if all of the following conditions are satisfied:
- (a) we believe the
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, the franchise agreement is binding upon Bigfoot Franchising, LLC, and its successors and assigns. This means that Bigfoot Forestry can transfer the agreement to another party without needing prior notice to the franchisee. However, Bigfoot Forestry remains liable for any obligations incurred before the transfer's effective date. The agreement also specifies that the rights and duties within it are personal to the franchisee and their owners, emphasizing the importance of their character, skills, and financial resources. This personal aspect restricts the franchisee from transferring their rights or duties without prior approval from Bigfoot Forestry, ensuring that any new party meets their standards.
This clause has significant implications for prospective Bigfoot Forestry franchisees. While Bigfoot Forestry retains the flexibility to assign the agreement to another entity, franchisees face restrictions on transferring their rights. This protects Bigfoot Forestry's interests by ensuring that franchisees meet their standards and maintain the integrity of the franchise.
For a potential franchisee, this means they cannot sell, transfer, or assign their franchise to someone else without Bigfoot Forestry's permission. Bigfoot Forestry will assess the proposed transferee to ensure they meet the franchisor's criteria. If a franchisee attempts to transfer the franchise without approval, it would be considered a breach of the agreement, potentially leading to termination. Franchisees should carefully consider these restrictions on transferability before entering into the agreement.