Can the Applicant assign the B Bops agreement by operation of law?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer acknowledges that the rights and duties created pursuant to this Agreement are personal to Developer and its owners and that Company has granted the development rights in reliance upon the character, skill, business ability, financial capacity and attitude of Developer and its owners.
Therefore, without the prior written approval of Company, neither this Agreement nor the development rights (or any interest therein), nor any controlling ownership interest in Developer may be directly or indirectly, voluntarily or by operation of law, sold, assigned, conveyed, sublet, subfranchised or otherwise transferred (hereinafter collectively referred to as a "transfer") to any person or entity.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the rights and duties within the Development Agreement are specific to the developer and their owners. B Bops grants development rights based on the developer's character, skills, business acumen, financial stability, and overall attitude.
Therefore, the Development Agreement explicitly states that neither the agreement itself, nor the development rights, nor any controlling ownership interest in the developer can be directly or indirectly transferred to another person or entity without B Bops's prior written approval. This restriction applies whether the transfer is voluntary or occurs by operation of law.
This requirement means a prospective B Bops developer cannot sell, assign, convey, sublet, subfranchise, or otherwise transfer the agreement or rights to anyone else unless B Bops gives explicit permission in writing. This provision ensures B Bops maintains control over who develops their franchises and can prevent unwanted or unqualified individuals from taking over development rights.
For a potential B Bops franchisee, this clause underscores the importance of being thoroughly vetted and approved by B Bops, as the agreement cannot be transferred without their consent. This also means that if the franchisee's circumstances change, such as a desire to sell the business or a change in ownership, they must seek approval from B Bops, which may or may not be granted.