Are Bigfoot Forestry franchisees allowed to assign their rights against the franchisor?
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
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees face restrictions on transferring their rights and duties under the franchise agreement. Section 19.2 states that the rights and duties are personal to the franchisee and the owners, emphasizing that Bigfoot Forestry grants franchise rights based on the character, skill, attitude, business ability, and financial resources of the franchisee and their owners.
Because the agreement is considered a personal services contract, franchisees cannot engage in a transfer without prior approval from Bigfoot Forestry. Any transfer without this approval is deemed void and constitutes a breach of the agreement. Bigfoot Forestry states that it will not unreasonably withhold approval of a proposed transfer if certain conditions are met.
These conditions include the proposed transferee demonstrating sufficient business experience, aptitude, and financial resources to operate a Bigfoot Forestry Business, meeting the franchisor'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 obtain all necessary licenses and permits required by law.
The transferee must agree to guarantee and perform the franchisee's obligations under the agreement and execute Bigfoot Forestry's then-current form of Waiver and Release of Claims. This comprehensive list of requirements highlights the importance Bigfoot Forestry places on maintaining standards and ensuring that any new franchisee is well-qualified and committed to upholding the brand's reputation.