What are the minimum ownership interest requirements for the Managing Owner of a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate an Owner with primary responsibility for the management and operation of your Business (the "Managing Owner"). We strongly recommend, but do not require, that you adhere to an owner-operator model whereby the Managing Owner: (a) remains actively and personally involved with the operation of your Business on a full-time basis; and (b) travels to job sites for purposes of providing Bigfoot Forestry Services, managing projects and supervising Service Technicians (if any). However, we do permit you to hire a Project Manager in accordance with §8.2 to assume these responsibilities from the Managing Owner. Either the Managing Owner or a Project Manager be present at each job site for purposes of providing Bigfoot Forestry Services, managing the project and supervising Service Technicians. The Managing Owner must: (a) be approved by us; (b) successfully complete all training programs we require; (c) dedicate either (i) full-time efforts to the Business (if you adhere to an owner-operator model) or (ii) commercially reasonable efforts to the Business (if you hire a Project Manager); (d) at all times own
- at least 20% of the Equity Interests in the Business or Franchisee Entity unless we waive this requirement; and (e) have binding decision-making authority on matters involving your Business.
Your other Owners may be passive investors.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 32–33)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, the Managing Owner must at all times own at least 20% of the equity interests in the business or franchisee entity, unless this requirement is waived by Bigfoot Forestry. The Managing Owner is the designated owner with primary responsibility for the management and operation of the Bigfoot Forestry business.
This requirement ensures that the Managing Owner has a significant stake in the success of the franchise and is motivated to manage it effectively. It also aligns with Bigfoot Forestry's interest in having committed and invested owner-operators. The FDD also states that other owners may be passive investors, meaning they do not need to be actively involved in the business's daily operations.
Furthermore, the Managing Owner must have binding decision-making authority on matters involving the business. This ensures that the Managing Owner has the power to make necessary decisions for the business's operation. The Managing Owner must also be approved by Bigfoot Forestry and successfully complete all required training programs.
In the event of a transfer of ownership, a "Permitted Transfer" does not include any transfer that results in the Managing Owner owning less than 20% of the equity interests in the Development Business or Developer Entity. This reinforces the importance of maintaining the Managing Owner's minimum ownership stake.