Must a Bigfoot Forestry franchisee and their owners sign a General Release as part of a transfer?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
ment agreement (unless we, in our sole discretion, instruct you to assign this Agreement to the transferee) except that: (i) the Term shall be the Term remaining under this Agreement; (ii) the transferee need not pay a separate development fee; and (iii) the Development Schedule and Development Territory shall be the same Development Schedule and Development Territory specified in this Agreement (modified to reflect the development obligations satisfied prior to the Transfer);
- (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;
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, if a franchisee wishes to transfer their rights and obligations under the Franchise Agreement, both the franchisee and their owners must sign a General Release. This release is the franchisor's then-current form of Waiver and Release of Claims.
In addition to the General Release, Bigfoot Forestry requires several other conditions to be met before approving a transfer. These include the payment of a $10,000 transfer fee (plus reimbursement for any broker commissions if Bigfoot Forestry uses a broker to find the transferee), the assignment of all Franchise Agreements to the transferee, and satisfaction of any other conditions Bigfoot Forestry reasonably requires. Bigfoot Forestry also retains the right of first refusal, meaning they can choose to purchase the franchise themselves instead of allowing a transfer to a third party.
These requirements ensure that Bigfoot Forestry maintains control over who becomes a franchisee and protects its interests during a transfer. The General Release likely serves to prevent future legal claims against Bigfoot Forestry by the transferring franchisee and their owners. A prospective franchisee should carefully consider these requirements and the potential costs associated with transferring their franchise before entering into a Franchise Agreement with Bigfoot Forestry.