What obligations does the franchisee have at the closing of the asset acquisition by Bigfoot Forestry?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
ize the foregoing companies to transfer such telephone numbers, domain names and listings to us and you authorize us, and appoint us and any officer we designate as your attorney-in-fact to direct these companies to transfer the telephone numbers, domain names and listings to us if you fail or refuse to do so); and
- (k) provide us with satisfactory evidence of your compliance with the above obligations within 30 days after the effective date of the termination, expiration or Transfer of this Agreement.
Subsections (g), (h), (i) and (j) above do not apply if you Transfer your Business to an approved transferee or we exercise our right to purchase your Business; provided, however, that clause (i) shall apply with respect to any Bigfoot Forestry Vehicle or operating equipment that is not transferred to or acquired by us or another franchisee. If an Owner transfers his or her entire Equity Interest in the Business or Franchisee Entity but you continue to operate the Business pursuant to this Agreement, then this Section will not apply to you (or to any remaining Owner) and the former Owner is subject only to the obligations set forth in subsections (a) and (b).
21.2. Purchase Option.
- (a) Generally.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 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. If Bigfoot Forestry exercises this purchase option, they will notify the franchisee of the specific assets they wish to purchase, referred to as the "Acquired Assets," within 20 days after the termination or expiration date.
The franchisee's obligations related to the asset acquisition are tied to providing satisfactory evidence of compliance with certain post-termination obligations. Specifically, the franchisee must provide Bigfoot Forestry with evidence of their compliance with obligations related to termination, expiration, or transfer of the agreement within 30 days after the effective date of such event.
However, these obligations are not absolute. Certain subsections outlining specific post-termination duties do not apply if the franchisee transfers their business to an approved transferee or if Bigfoot Forestry exercises its right to purchase the business. An exception exists where the franchisee must still comply with clause (i) regarding any Bigfoot Forestry Vehicle or operating equipment that is not transferred to or acquired by Bigfoot Forestry or another franchisee. If an owner transfers their entire equity interest but the franchisee continues to operate the business, these sections do not apply to the franchisee or any remaining owner, with the former owner only subject to obligations in subsections (a) and (b).