What happens if a Bigfoot Forestry franchisee attempts a transfer without approval?
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 the 2025 Bigfoot Forestry FDD, the rights and duties within the franchise agreement are personal to the franchisee and their owners. Bigfoot Forestry grants franchise rights based on the character, skills, attitude, business ability, and financial resources of the franchisee and their owners.
Because the franchise agreement is considered a personal services contract, franchisees and their owners must obtain prior approval from Bigfoot Forestry before engaging in any transfer, unless it is a permitted transfer.
If a franchisee attempts a transfer without obtaining prior approval from Bigfoot Forestry, the attempted transfer is considered void and constitutes a breach of the franchise agreement. This means the transfer will not be recognized, and the franchisee will be in violation of their agreement with Bigfoot Forestry.