During what time periods are Bigfoot Forestry franchisees prohibited from engaging in Prohibited Activities?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, franchisees are restricted from engaging in "Prohibited Activities" during specific periods. These activities include owning or operating a competing business, making negative comments about the franchisor, diverting business, or inducing others to transfer their business away from Bigfoot Forestry.
Specifically, a franchisee (or their spouse) is prohibited from engaging in these activities while they are an owner of the Bigfoot Forestry franchise. Additionally, these prohibitions extend during the "Restricted Period," which is not explicitly defined in this excerpt but generally refers to a period after the franchise agreement terminates. However, a franchisee 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.
It's important to note that if a franchisee violates these restrictions by engaging in prohibited activities during the Restricted Period, the Restricted Period will be extended by the duration of the violation. Furthermore, any non-competition covenants in other agreements remain in effect even after the Restricted Period under the Franchise Agreement expires. This means franchisees must carefully review all agreements to understand the full scope of their non-compete obligations. Prospective franchisees should seek clarification from Bigfoot Forestry regarding the exact definition and duration of the "Restricted Period" and the "Restricted Territory" to fully understand the limitations they will face.