Can B Bops assign the Development Agreement to another party?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| M. Conditions for the Company approval of transfer | Section 13 | Proposed transferee must satisfy the Company's current standards for new developers; assumption of Development Agreement; execution of general release (to the extent permitted by Minnesota law) and nondisclosure and noncompetition agreement; payment of $3,000 transfer fee; compliance with transfer provisions of Franchise Agreement if any Franchises simultaneously being transferred; and compliance with right of first refusal granted to the Company. |
|---|---|---|
| N. The Company's right of first refusal to acquire your development rights | Section 13(D) | The Company has the right to purchase the development rights or any ownership interest in the entity owning the development rights upon the same terms and conditions as contained in any bona fide offer received from a third party. |
| O. The Company's option to | None | Not applicable. |
| purchase your development | ||
| rights | ||
| P. Your death or disability | Section 13(B) | The development rights, or any controlling interest in any entity owning the development rights, must be transferred to an approved transferee, with the Company to be notified of the proposed transferee within six (6) months of death or disability. |
| Q. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the company's ability to assign the Application Agreement is not applicable, as indicated in the provided table. However, the document outlines conditions under which a franchisee can transfer their development rights.
Specifically, if a franchisee proposes to transfer their development rights, the proposed transferee must meet B Bops's current standards for new developers. The transferee must also assume the Development Agreement, execute a general release and a non-disclosure and non-competition agreement, and pay a $3,000 transfer fee. Additionally, the transferee must comply with the transfer provisions outlined in the Franchise Agreement if any franchises are simultaneously being transferred, and adhere to the right of first refusal granted to B Bops.
B Bops also has the right of first refusal to acquire the franchisee's development rights. This means that B Bops has the option to purchase the development rights or any ownership interest in the entity owning the development rights under the same terms and conditions as any bona fide offer received from a third party. In the event of the franchisee's death or disability, the development rights must be transferred to an approved transferee, and B Bops must be notified of the proposed transferee within six months.