Does Bigfoot Forestry's right of first refusal apply to Permitted Transfers?

According to Bigfoot Forestry's 2025 Franchise Disclosure Document, the franchisor's right of first refusal does not apply to Permitted Transfers. A "Permitted Transfer" includes transfers between existing owners, transfers to a new Developer Entity where the existing owners collectively own and control 100% of the equity, or transfers of less than 20% of the equity in the Development Business or Developer Entity. However, this is conditional on the Managing Owner retaining at least 20% of the Equity Interests in the Development Business or Developer Entity.

For a prospective Bigfoot Forestry franchisee, this means that certain ownership changes or transfers can occur without requiring the franchisor to first have the opportunity to purchase the franchise. This provides flexibility in managing ownership structures and potentially bringing in new investors or partners without franchisor intervention, as long as the conditions for a Permitted Transfer are met.

However, even with a Permitted Transfer, the franchisee must still provide Bigfoot Forestry with at least 10 days' prior notice. Additionally, upon request from Bigfoot Forestry, the former Developer Entity must sign a corporate guarantee to secure the performance of the new Developer Entity's financial obligations under all Definitive Agreements if the transfer results in a new Developer Entity. All parties involved, including the transferee, must also sign any documents reasonably requested by Bigfoot Forestry to effectuate and document the Permitted Transfer.