Does the B Bops company have the right to unreasonably withhold consent to a transfer of development rights?

According to B Bops's 2025 Franchise Disclosure Document, B Bops will not unreasonably withhold consent to a transfer of development rights. Specifically, where the consent or approval of B Bops is required in any section of the agreement, B Bops agrees that such consent or approval shall not unreasonably be withheld.

However, the FDD outlines specific conditions under which a transfer may be requested, such as transfer to a successor entity or in the event of death or disability of the developer. These conditions must be met for B Bops to approve the transfer. For instance, if the developer wants to transfer rights to a business entity, the developer must own a majority of the equity and voting securities, be the principal executive, fulfill all financial obligations to B Bops, and ensure the entity agrees to assume all obligations in writing.

In the event of the developer's death or disability, the legal representative has six months to apply for the right to transfer the development rights. B Bops may require that the transfer comply with certain conditions, but waives the transfer fee and right of first refusal if the transfer is to an immediate family member. Failure to comply with these provisions or propose an acceptable transferee may result in termination of the agreement.

It is important for a prospective B Bops franchisee to understand these conditions and obligations related to transferring development rights. While B Bops agrees not to unreasonably withhold consent, the franchisee must still meet all specified requirements to ensure a smooth transfer process. This protects both B Bops's interests and the franchisee's investment.