What are the requirements for a 'Permitted Transfer' of a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
You may engage in a Permitted Transfer without our prior approval, but you must: (a) give us at least 10 days' prior notice; and (b) upon our request, cause the former Developer Entity to sign a corporate guarantee in the format we require to secure performance of the new Developer Entity's financial obligations under all Definitive Agreements (if the Permitted Transfer results in a new Developer Entity).
You and the Owners (and the transferee) agree to sign all documents we reasonably request to effectuate and document the Permitted Transfer.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, a 'Permitted Transfer' is a specific type of transfer that can occur without prior approval from Bigfoot Forestry. These include transfers between existing owners, transfers to a new Developer Entity where the original owners maintain 100% ownership and control, or transfers of less than 20% of the Equity Interests in the Development Business or Developer Entity. However, this last type of transfer is conditional; it cannot result in the Managing Owner owning less than 20% of the Equity Interests.
Even though prior approval isn't required for a Permitted Transfer, the franchisee must still provide Bigfoot Forestry with at least 10 days' notice before the transfer takes place. Additionally, if the transfer results in a new Developer Entity, Bigfoot Forestry can request the former Developer Entity to sign a corporate guarantee. This guarantee would ensure that the new entity fulfills its financial obligations under all Definitive Agreements.
Furthermore, both the franchisee/owners and the transferee are required to sign any documents that Bigfoot Forestry deems reasonably necessary to complete and document the Permitted Transfer. This ensures that Bigfoot Forestry has a clear record of the transfer and that all parties are aware of their obligations. These stipulations allow for some flexibility in ownership while still protecting Bigfoot Forestry's interests and maintaining control over who is involved in their franchise system.