If a Bigfoot Forestry franchisee develops an Improvement, who are they required to assign the rights to?
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.
- (b) Unfair Competition. You may not engage in any Prohibited Activities at any time: (i) that you are (or your spouse is) an Owner; or (ii) during the Restricted Period. Notwithstanding the foregoing, you may have an interest in a Competing Business during the Restricted Period as long as the Competing Business does not provide competitive services at job sites located in the Restricted Territory. If you engage in any Prohibited Activity during the Restricted Period (other than having an interest in a
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, if a franchisee develops an Improvement, they must assign all rights to it to Bigfoot Forestry or its designee. An "Improvement" is defined broadly as any idea, addition, modification, or enhancement to various aspects of the Bigfoot Forestry business, including services, products, operational methods, processes, marketing materials, or intellectual property. This assignment is to be made without any charge to Bigfoot Forestry.
However, the FDD also addresses a situation where applicable law prevents the franchisee from assigning ownership of the Improvement to Bigfoot Forestry. In such cases, the franchisee is obligated to grant Bigfoot Forestry a perpetual license to use the Improvement. This license must be free of charge and include full rights for Bigfoot Forestry to use, commercialize, and sublicense the Improvement.
This requirement ensures that Bigfoot Forestry maintains control over any advancements or modifications to its system, brand, and intellectual property. It allows Bigfoot Forestry to incorporate successful franchisee-developed ideas across the entire franchise network, benefiting all franchisees. However, it also means that franchisees do not retain ownership or exclusive rights to any Improvements they develop, even if those Improvements significantly enhance their individual Bigfoot Forestry businesses. Prospective franchisees should consider this when evaluating the potential benefits and limitations of the franchise agreement.