Does a Bigfoot Forestry franchisee need approval before using an Improvement they developed?
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.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, a franchisee needs to understand the stipulations around "Improvements" they develop for their business. An "Improvement" is defined broadly as any modification or enhancement to the services, products, operations, processes, marketing, or intellectual property used by a Bigfoot Forestry business.
The agreement states that franchisees must assign all rights to any Improvement they develop to Bigfoot Forestry. This means that while a franchisee might come up with a new idea or process, the legal ownership of that Improvement transfers to the franchisor. If applicable law prevents the franchisee from assigning ownership, the franchisee agrees to perpetually license the Improvement to Bigfoot Forestry, free of charge, with full rights for Bigfoot Forestry to use, commercialize, and sublicense it.
This policy has significant implications for franchisees. While they are encouraged to innovate and improve their business, they must understand that any such Improvements become the property of Bigfoot Forestry. This is a fairly standard practice in franchising, allowing the franchisor to maintain consistency and control across the brand, and to share successful innovations across the franchise system. However, it also means that franchisees do not directly benefit financially from Improvements they develop, as the franchisor has the right to commercialize and sublicense them without additional compensation to the franchisee.