What upgrades are required for a transferee of a Bigfoot Forestry franchise?
Bigfoot_Forestry Franchise · 2025 FDDAnswer from 2025 FDD Document
ment 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);
- (e) you or the transferee pay us a $10,000 transfer fee (in addition to the transfer fee, you must reimburse us for any commission we pay our broker if our broker finds the transferee);
- (f) you assign all Franchise Agreements to the transferee in accordance with the transfer provisions under each such Franchise Agreement, including payment of any transfer fee imposed under each such Franchise Agreement;
- (g) you and your Owners sign a General Release;
- (h) we choose not to exercise our right of first refusal described in §7.5; and
- (i) you or the transferring Owner, as applicable, and the transferee satisfy all other conditions we reasonably require as a condition to our approval of the Transfer.
You may not: (a) transfer less than all development rights remaining under this Agreement (i.e., you may not retain the right to develop any Bigfoot Forestry Business); or (b) transfer your development rights to multiple transferees. Our consent to a Transfer shall not constitute a waiver of any Claims we may have against the transferor or our right to demand the transferee comply with all terms of the area development agreement.
- 7.3. Permitted Transfers. You may engage in a Permitted Transfer without our prior approval,
Source: Item 23 — RECEIPT (FDD pages 42–162)
What This Means (2025 FDD)
According to the 2025 Bigfoot Forestry FDD, a transfer of a franchise requires the transferee to meet several conditions. The transferee must have sufficient business experience, aptitude, and financial resources to operate the Bigfoot Forestry Business and meet the franchisor's minimum criteria for franchisees. The transferee must also successfully complete the initial training program, or make arrangements to attend it, and pay any applicable training fee. Additionally, the transferee must obtain all necessary licenses and permits required by law to own and operate the Bigfoot Forestry Business.
As part of the transfer, the transferee must agree to guarantee and perform the obligations under the franchise agreement. A $10,000 transfer fee must be paid to Bigfoot Forestry. If Bigfoot Forestry uses a broker to find the transferee, the transferee must reimburse Bigfoot Forestry for any commission paid to the broker. All franchise agreements must be assigned to the transferee, including payment of any transfer fee imposed under each franchise agreement. The transferor and their owners must sign a General Release, and Bigfoot Forestry must choose not to exercise its right of first refusal.
Furthermore, both the transferor and the transferee must satisfy any other conditions that Bigfoot Forestry reasonably requires for approval of the transfer. The FDD specifies that a transfer cannot involve less than all development rights, meaning the transferor cannot retain the right to develop any Bigfoot Forestry Business. Consent to a transfer does not waive any claims Bigfoot Forestry may have against the transferor, nor does it waive the right to demand compliance from the transferee with all terms of the area development agreement. These conditions ensure that the new franchisee is well-prepared and financially capable, protecting the Bigfoot Forestry brand and network.