factual

Does Bigfoot Forestry prohibit franchisees from joining a trade association?

Bigfoot_Forestry Franchise · 2025 FDD

Answer from 2025 FDD Document

Prohibited Activities" means and includes any of the following: (a) owning, operating or having any other interest (e.g., as a director, officer, employee, manager, consultant, creditor, representative, agent or in any similar capacity) in a Competing Business, other than owning less than 5% of the Equity Interests in a Competing Business that is a publicly-traded company; (b) disparaging or otherwise making negative comments about us, our affiliate, the System or any Bigfoot Forestry Business (this provision does not prohibit disclosure of truthful information to Governmental Authorities); (c) diverting or attempting to divert any business from us, our affiliate or another franchisee; and/or (d) inducing any Person to transfer their business from a Bigfoot Forestry Business to a competitor.

Source: Item 23 — RECEIPT (FDD pages 42–162)

What This Means (2025 FDD)

The 2025 Franchise Disclosure Document for Bigfoot Forestry does not explicitly state whether franchisees are prohibited from joining trade associations. However, the document does define "Prohibited Activities" which include owning, operating, or having an interest in a competing business, disparaging the franchisor, diverting business, or inducing someone to transfer their business to a competitor.

While joining a trade association isn't directly addressed, franchisees should consider whether participation in certain trade associations could potentially conflict with the terms outlined in the franchise agreement, particularly those related to "Prohibited Activities" or confidentiality. For example, if a trade association's activities involve sharing confidential information or promoting competing services, a franchisee's involvement might be viewed as a breach of contract.

Prospective franchisees should seek clarification from Bigfoot Forestry regarding their policy on franchisee involvement in trade associations to ensure compliance with the franchise agreement. It would be prudent to understand what specific activities or affiliations might be considered a conflict of interest. This inquiry should be made during the due diligence process before signing the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.