Does the B Bops company's approval for transfer have to be in writing?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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. Under no circumstances will Developer be permitted to make any partial transfer of the development rights granted hereunder; any sale, assignment or transfer of this Agreement or the development rights shall require Developer to transfer all of Developer's right, title and interest in and to this Agreement and the development rights. Company shall not unreasonably withhold its consent to any transfer when requested, provided that such transfer complies with the following requirements that may be applicable to the particular type of transfer:
- A. Transfer to Successor Entity. If Developer is an individual and desires to transfer the development rights to a partnership, corporation or limited liability company, Company will not unreasonably withhold its consent to such transfer upon satisfaction of the following conditions: (i) such entity shall comply with each of the requirements specified in Section 14 hereof pertaining to ownership of the development rights by an entity; (ii) Developer shall be the owner of a majority of the equity and voting securities or interests issued by such entity; (iii) Developer shall be the principal executive of such entity;
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, any transfer of the development rights requires the prior written approval of B Bops. Specifically, the document states that neither the agreement nor the development rights can be sold, assigned, conveyed, or transferred to any person or entity without B Bops's written approval.
This requirement protects B Bops by ensuring that any new developer meets their standards. It allows B Bops to assess the potential transferee's character, skills, business acumen, financial capacity, and overall attitude before approving the transfer. This is a common practice in franchising, as the success of individual franchise locations can impact the brand's reputation as a whole.
However, B Bops will not unreasonably withhold consent to a transfer if the transfer complies with the requirements applicable to the particular type of transfer. For example, if the developer is an individual and wants to transfer the development rights to a legal entity like a partnership, corporation, or LLC, B Bops's consent will not be unreasonably withheld if the entity meets certain conditions. These conditions include complying with the ownership requirements outlined in Section 14 of the agreement, the developer maintaining majority ownership and executive control of the entity, satisfaction of all outstanding financial obligations to B Bops, and the entity's written agreement to assume all of the developer's obligations.