In Michigan, does Bigfoot Forestry have a right of first refusal to purchase the assets of a franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
epresentations and warranties contained in the offer. If we do not exercise our right of first refusal, you or the Owner, as applicable, may complete the Transfer to the purchaser pursuant to the terms of the offer, subject to the requirements of §19.2, including our approval of the transferee. If the sale is not completed within 120 days after we receive the offer, or there is a material change to the terms of sale, we will again have the right of first refusal specified in this Section. Our right of first refusal shall not apply to a Permitted Transfer.
<span id="page-73-2"
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, upon the termination or expiration of the Franchise Agreement, Bigfoot Forestry has the option to purchase the franchisee's business and/or its assets. Bigfoot Forestry will notify the franchisee of the assets it wishes to purchase, referred to as the "Acquired Assets", within 20 days after the termination or expiration date.
If a franchisee intends to sell their Bigfoot Forestry business, the franchise agreement dictates that Bigfoot Forestry has a right of first refusal. This means that before a franchisee can sell to a third party, they must first offer the business to Bigfoot Forestry on the same terms.
Bigfoot Forestry has a specified timeframe to exercise this right. If the sale is not completed within 120 days after Bigfoot Forestry receives the offer, or if there is a material change to the terms of sale, the right of first refusal is reinstated. This ensures that Bigfoot Forestry has the opportunity to reassess the purchase under the new terms.
However, this right of first refusal does not apply to a "Permitted Transfer," which includes transfers between existing owners, transfers to a new Developer Entity wholly owned and controlled by the existing owners, or transfers of less than 20% of the Equity Interests in the Development Business or Developer Entity, provided that the Managing Owner continues to own at least 20% of the Equity Interests.