What restrictions are placed on a Bigfoot Forestry franchisee's use of Intellectual Property and Confidential Information?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
opardize our franchise system if you were to unfairly compete with us or misuse our Intellectual Property. In addition, you understand that certain terms of the Franchise Agreement apply to "Owners" and not just Franchisee. You agree to comply with this Agreement to: (a) avoid damaging our System by engaging in unfair competition; and (b) bind yourself to the terms of the Franchise Agreement applicable to Owners.
3. BRAND PROTECTION COVENANTS.
- (a) Intellectual Property and Confidential Information. You agree to: (i) refrain from using the Intellectual Property or Confidential Information in any capacity or for any purpose other than the operation of Franchisee's Bigfoot Forestry Business in compliance with the Franchise Agreement and Manual; (ii) maintain the confidentiality of the Confidential Information at all times; (iii) refrain from making unauthorized copies of documents containing Confidential Information; (iv) take all steps we reasonably require to prevent unauthorized use or disclosure of Confidential Information; and (v) immediately stop using the Intellectual Property and Confidential Information at such time that you are (or your spouse is) no longer an Owner. You agree to assign to us or our designee, without charge, all rights to any Improvement developed by you, including the right to grant sublicenses. If applicable Law precludes you from assigning ownership to us, then you agree to perpetually license the Improvement to us, free of charge, with full rights to use, commercialize and sublicense the same.
- (b) Unfair Competition. You may not engage in any Prohibited Activities at any time: (i) that you are (or your spouse is) an Owner; or (ii) during the Restricted Period. Notwithstanding the foregoing, you may have an interest in a Competing Business during the Restricted Period as long as the Competing Business does not provide competitive services at job sites located in the Restricted Territory. If you engage in any Prohibited Activity during the Restricted Period (other than having an interest in a
Competing Business permitted by this Section) your Restricted Period will be extended by the period of time during which you engaged in the Prohibited Activity. Any such extension of time will not constitute a waiver of your breach or impair any of our rights or remedies relating to your breach. For purposes of clarity, you remain bound by any non-competition covenants in other Definitive Agreements that remain in effect for a period of time that extends beyond the expiration of the Restricted Period under this Agreement, and the expiration of the Restricted Period under this Agreement does not in any way diminish your obligation to comply with such other covenants.
- (c) Family Members. You could circumvent the purpose of §3 by disclosing Confidential Information to immediate family members (i.e., parent, sibling, child or grandchild) and it would be difficult for us to prove your breach.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to Bigfoot Forestry's 2025 Franchise Disclosure Document, franchisees face several restrictions regarding the use of Intellectual Property and Confidential Information. Franchisees must use the Intellectual Property and Confidential Information solely for operating their Bigfoot Forestry Business in accordance with the Franchise Agreement and Manual. They are obligated to maintain the confidentiality of the Confidential Information at all times and prevent unauthorized copies of documents containing such information. Franchisees must also take necessary steps to prevent unauthorized use or disclosure of Confidential Information. These obligations extend to the franchisee's employees and contractors, who must also sign a Confidentiality Agreement.
These restrictions remain in place as long as the individual is an Owner, employee, or independent contractor of the Bigfoot Forestry franchise. Upon termination of their relationship with the franchise, they must immediately cease using the Intellectual Property and Confidential Information. Any improvements developed by the franchisee related to the Bigfoot Forestry Business must be assigned to the franchisor, or if assignment is not legally possible, perpetually licensed to the franchisor for their use and commercialization.
Confidential Information includes Know-How, Business Data, information in the Manual or System, and the terms of the Franchise Agreement. It also encompasses concepts, ideas, trade secrets, financial information, marketing strategies, and other sensitive business details. However, information that is publicly available, rightfully possessed before disclosure, independently developed, or rightfully obtained from a third party without breach of confidentiality is not considered Confidential Information. This framework ensures that Bigfoot Forestry's proprietary assets are protected, while also allowing franchisees to operate their businesses effectively within the defined system.