What must a Bigfoot Forestry franchisee do if they wish to engage in a Transfer of their franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 proposed transferee has sufficient business experience, aptitude and financial resources to own and operate a Bigfoot Forestry Business and meets our minimum criteria for franchisees;
- (b) you and your affiliates and Owners are in full compliance with all Definitive Agreements;
- (c) the transferee's owners successfully complete, or make arrangements to attend, the initial training program and the transferee pays us any applicable training fee;
- (d) the transferee and its owners obtain all licenses and permits required by applicable Law to own and operate the Bigfoot Forestry Business;
- (e) the transferee: (i) agrees to guarantee and perform your obligations under this Agreement and
- (e) you or the transferee pay us a $10,000 transfer fee (in addition to the transfer fee, you must reimburse us for any commission we pay our broker if our broker finds the transferee);
- (f) you assign all Franchise Agreements to the transferee in accordance with the transfer provisions under each such Franchise Agreement, including payment of any transfer fee imposed under each such Franchise Agreement;
- (g) you and your Owners sign a General Release;
- (h) we choose not to exercise our right of first refusal described in §7.5; and
- (i) you or the transferring Owner, as applicable, and the transferee satisfy all other conditions we reasonably require as a condition to our approval of the Transfer.
You may not: (a) transfer less than all development rights remaining under this Agreement (i.e., you may not retain the right to develop any Bigfoot Forestry Business); or (b) transfer your development rights to multiple transferees. Our consent to a Transfer shall not constitute a waiver of any Claims we may have against the transferor or our right to demand the transferee comply with all terms of the area development agreement.
- **7.3.
Permitted Transfers.** You may engage in a Permitted Transfer without our prior approval, but you must: (a) give us at least 10 days' prior notice; and (b) upon our request, cause the former Developer Entity to sign a corporate guarantee in the format we require to secure performance of the new Developer Entity's financial obligations under all Definitive Agreements (if the Permitted Transfer results in a new Developer Entity).
You and the Owners (and the transferee) agree to sign all documents we reasonably request to effectuate and document the Permitted Transfer.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees must obtain prior approval from Bigfoot Forestry before engaging in a transfer, unless it is a 'Permitted Transfer.' A 'Permitted Transfer' includes transfers between existing owners, to a new Developer Entity wholly owned and controlled by the existing owners, or of less than 20% of the equity interests in the business, provided the Managing Owner still owns at least 20% of the equity.
For transfers requiring approval, Bigfoot Forestry will not unreasonably withhold approval if certain conditions are met. These conditions include Bigfoot Forestry believing the transferee has sufficient business experience, aptitude, and financial resources and meets Bigfoot Forestry's minimum criteria for franchisees. Additionally, the franchisee, their affiliates, and owners must be in full compliance with all Definitive Agreements. The transferee's owners must also successfully complete the initial training program and pay any applicable training fee. The transferee and its owners must obtain all required licenses and permits, and the transferee must agree to guarantee the franchisee's obligations under the Franchise Agreement.
Furthermore, the franchisee or transferee must pay a $10,000 transfer fee, and reimburse Bigfoot Forestry for any commission paid to a broker if the broker found the transferee. The franchisee must assign all Franchise Agreements to the transferee, including paying any transfer fee under each Franchise Agreement, and the franchisee and their Owners must sign a General Release. Bigfoot Forestry must also choose not to exercise its right of first refusal. Finally, the franchisee or transferring Owner and the transferee must satisfy all other conditions Bigfoot Forestry reasonably requires. Even in the event of a Permitted Transfer, the franchisee must give Bigfoot Forestry at least 10 days' prior notice and, if the transfer results in a new Developer Entity, cause the former Developer Entity to sign a corporate guarantee.