Can a Bigfoot Forestry franchisee engage in any Prohibited Activities while they (or their spouse) are an Owner?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
t 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.
- (c) Family Members. You could circumvent the purpose of §3 by disclosing Confidential Information to immediate family members (i.e., parent, sibling, child or grandchild) and it would be difficult for us to prove your breach. For that reason you are presumed to have breached this Agreement if an immediate family member: (i) engages in a Prohibited Activity at any time you are prohibited from doing so; or (ii) uses or discloses Confidential Information.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, a franchisee (or their spouse) is prohibited from engaging in certain activities while they are an owner. These "Prohibited Activities" include owning, operating, or having any interest in a competing business (with a minor exception for owning less than 5% of a publicly-traded competitor), disparaging Bigfoot Forestry, diverting business away from Bigfoot Forestry, or inducing anyone to transfer their business away from a Bigfoot Forestry Business to a competitor.
Specifically, the FDD states that franchisees may not engage in any Prohibited Activities at any time that they (or their spouse) are an Owner. However, there is a limited exception during the Restricted Period, where a franchisee may have an interest in a Competing Business 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 (other than having a permitted interest in a Competing Business), the Restricted Period will be extended by the period of time during which they engaged in the Prohibited Activity. The FDD clarifies that non-competition covenants in other agreements that extend beyond the Restricted Period under the Franchise Agreement remain in effect, and the expiration of the Restricted Period does not diminish the obligation to comply with such other covenants.