Does Bigfoot Forestry need to notify the franchisee before assigning the Franchise Agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.1. By Us. This Agreement is fully assignable by us (without prior notice to you) and shall inure to the benefit of any assignee(s) or other legal successor(s) to our interest in this Agreement, provided that we shall, subsequent to any such assignment, remain liable for any obligations incurred by us prior to the effective date of the assignment. We may also delegate our obligations under this Agreement to one or more Persons without assigning the Agreement.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, Bigfoot Forestry can assign the Franchise Agreement without providing prior notice to the franchisee. However, Bigfoot Forestry remains liable for any obligations incurred before the assignment's effective date. This means that while the franchisee will be dealing with a new entity, Bigfoot Forestry is still responsible for any unresolved issues that occurred before the transfer.
This clause gives Bigfoot Forestry significant flexibility in structuring its business and potentially selling or transferring the franchise system. For a prospective franchisee, this means they need to be aware that the entity they initially contract with may not be the one they are dealing with throughout the entire term of the agreement. It is important to conduct thorough due diligence not only on Bigfoot Forestry but also on the potential for future assignees.
While Bigfoot Forestry can assign the agreement, the franchisee's ability to transfer the agreement is limited. The franchisee needs prior approval from Bigfoot Forestry for any transfer, with some exceptions for 'Permitted Transfers'. This difference highlights the power imbalance inherent in the franchise relationship, where the franchisor has more freedom to transfer its obligations than the franchisee.