What are the general requirements for a transferee to be approved by Bigfoot Forestry?
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.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees looking to transfer their franchise to a new owner must meet specific requirements to gain approval from Bigfoot Forestry. Bigfoot Forestry emphasizes that franchise rights are granted based on the character, skills, business ability, and financial resources of the franchisee and their owners. Therefore, any transfer is subject to their approval, ensuring the new owner meets their standards.
Bigfoot Forestry will not unreasonably withhold approval for a transfer if certain conditions are met. The potential transferee must demonstrate sufficient business experience, aptitude, and financial resources to successfully operate the Bigfoot Forestry business, meeting the franchisor's minimum criteria for new franchisees. Additionally, the current franchisee and their affiliates and owners must be in full compliance with all existing agreements with Bigfoot Forestry. The transferee's owners must also complete the initial training program or make arrangements to attend it, and they must pay any applicable training fees.
Furthermore, the transferee and their owners must secure all necessary licenses and permits required by law to operate the Bigfoot Forestry business. The transferee must also agree to guarantee and fulfill the current franchisee's obligations under the franchise agreement. The current franchisee or transferring owner 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, sign a general release, and satisfy any other reasonable conditions required by Bigfoot Forestry for approval. Bigfoot Forestry also retains the right to not approve the transfer if they choose to exercise their right of first refusal.
These transfer requirements ensure that any new franchisee is well-prepared and capable of maintaining the standards and obligations of a Bigfoot Forestry franchise. Franchisees considering a transfer should carefully review these conditions and discuss them with Bigfoot Forestry to ensure a smooth and compliant transfer process.