Does Bigfoot Forestry reserve the right to negotiate different terms with other area developers?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
7. TRANSFERS
- 7.1. 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 the performance of our obligations under this Agreement up to the effective date of the assignment.
- 7.2. By You. The rights and duties created by this Agreement are personal to you and the Owners. We are granting you area development rights in reliance upon the character, skill, attitude, business ability and financial resources of you and your Owners. Because this Agreement is a personal services contract, neither you nor any Owner may engage in a Transfer (other than a Permitted Transfer) without our prior approval. Any Transfer (other than a Permitted Transfer) without our approval is void and constitutes a breach of this Agreement. We will not unreasonably withhold our approval of a proposed Transfer if all of the following conditions are satisfied:
- (a) we believe the proposed transferee has sufficient business experience, aptitude and financial resources to develop, own and operate all of the remaining Bigfoot Forestry Businesses to be developed under this Agreement and meets our minimum criteria for area developers;
- (b) you and your Owners and affiliates are in full compliance with all Definitive Agreements;
- (c) the transferee's owners successfully complete, or make arrangements to attend, the initial training program and the transferee pays us any applicable training fee;
- (d) the transferee and its owners sign our then-current form of area development agreement (unless we, in our sole discretion, instruct you to assign this Agreement to the transferee) except that: (i) the Term shall be the Term remaining under this Agreement; (ii) the transferee need not pay a separate development fee; and (iii) the Development Schedule and Development Territory shall be the same Development Schedule and Development Territory specified in this Agreement (modified to reflect the development obligations satisfied prior to the Transfer);
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the franchisor retains the right to assign the Area Development Agreement without prior notice to the franchisee. However, Bigfoot Forestry remains liable for their obligations up to the assignment's effective date. The document specifies conditions under which a franchisee may transfer their rights, requiring franchisor approval, which will not be unreasonably withheld if certain criteria are met. These conditions include the transferee's qualifications, compliance with agreements, training completion, and signing the current area development agreement.
Specifically, the transferee must demonstrate sufficient business experience, aptitude, and financial resources to manage the remaining Bigfoot Forestry businesses under the development agreement. They must also meet the franchisor's minimum criteria for area developers. The franchisee and their owners must be in full compliance with all definitive agreements. The transferee's owners need to complete the initial training program and pay any applicable training fee.
Furthermore, the transferee and their owners must sign Bigfoot Forestry's then-current form of area development agreement. The term of the new agreement will match the remaining term of the original agreement, and the transferee is not required to pay a separate development fee. The development schedule and territory remain the same, adjusted for obligations already fulfilled. These stipulations ensure that any transfer maintains the integrity and standards of the Bigfoot Forestry franchise system.