What does 'Transfer' mean in the context of a Bigfoot Forestry franchise agreement?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
rity or improvement of these systems.
"Transfer" means a transfer or assignment of: (a) the Franchise Agreement or ADA (or any interest in either such agreement); (b) the assets of the Bigfoot Forestry Business (other than the sale of equipment in the ordinary course of business); (c) any ownership interest in the entity that is the "franchisee" or "area developer"; or (d) the franchised business you conduct under the Franchise Agreement or ADA.
"Travel Expenses" means all travel, meals, lodging, local transportation and other living expenses and costs incurred: (a) by us and our trainers, field support personnel, auditors and/or other representatives to visit your territory; or (b) by you or your personnel to attend training programs or conferences.
- 3. CPI Adjustments: All fees (and minimum fees) expressed as a fixed dollar amount are subject to adjustment based on changes to the United States Consumer Price Index (CPI).
Source: Item 6 — OTHER FEES (FDD pages 12–15)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry Franchise Disclosure Document, a "Transfer" broadly refers to the transfer or assignment of several aspects related to the franchise. This includes the Franchise Agreement itself or any Area Development Agreement (ADA), any assets of the Bigfoot Forestry business (excluding the sale of equipment in the ordinary course of business), any ownership interest in the franchisee entity or area developer, or the franchised business conducted under the Franchise Agreement or ADA.
In simpler terms, a transfer involves changing who controls or owns the Bigfoot Forestry franchise, the agreements governing it, or the business's assets. This definition is important because it establishes what actions require franchisor approval and may trigger transfer fees. However, the FDD also defines 'Permitted Transfer' which includes transfers between existing owners, transfers to a new business entity 100% owned by the transferring owners, or transfers of less than 20% of the ownership interests in the franchised business. These 'Permitted Transfers' do not incur a transfer fee.
Understanding what constitutes a transfer is crucial for franchisees because it dictates when they need to seek approval from Bigfoot Forestry and when they might incur fees. The Bigfoot Forestry FDD states that the transfer fee is $10,000 for the Franchise Agreement and $10,000 for the ADA. Knowing this definition helps franchisees avoid unintentional breaches of the agreement and plan for potential changes in ownership or business structure.
It is important to note that a transfer described in (a), (b) or (c) is not considered a 'Permitted Transfer' if it results in the Managing Owner owning less than 20% of the franchised business. The Managing Owner is the owner appointed and approved by Bigfoot Forestry with primary responsibility for the overall management and operation of the Bigfoot Forestry Business.