If the Bigfoot Forestry franchisee is an entity, what must it represent regarding its legal standing?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
You represent that Part A of ATTACHMENT "A" includes a complete and accurate list of your Owners. Upon request, you must send us a resolution of the Developer Entity authorizing the execution of this Agreement, a copy of its organizational documents and a current Certificate of Good Standing. You may form a separate Entity to enter into each Franchise Agreement provided that: (a) the Person or Persons owning the Equity Interests (and the percentage of the Equity Interests owned) in each such Entity must be the same Person or Persons owning the Equity Interests (with the same percentage of the Equity Interests owned) in the Developer Entity; and (b) each such Entity guarantees the performance of all other Entities formed under the authority of this §6. Each Owner, and the spouse of each Owner who is a natural Person, must sign a Franchise Owner Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, if a franchisee chooses to operate their Bigfoot Forestry business through a separate legal entity, they must provide certain assurances to the franchisor. Specifically, the franchisee must furnish a resolution from the entity that authorizes the execution of the Franchise Agreement.
Bigfoot Forestry also requires a copy of the entity's organizational documents, which would typically include articles of incorporation or a similar document that officially establishes the entity's legal structure and purpose. Additionally, the franchisee must provide a current Certificate of Good Standing. This certificate, issued by the relevant state authority, confirms that the entity is properly registered, has met all applicable legal requirements, and is authorized to conduct business in that state.
These requirements ensure that Bigfoot Forestry is dealing with a legally sound and properly authorized entity, which helps protect the franchisor's interests and maintain the integrity of the franchise system. It also ensures that all owners and their spouses sign a Franchise Owner Agreement.