What is the B Bops company's obligation when assigning the development agreement?

According to B Bops' 2025 Franchise Disclosure Document, B Bops has the right to assign the development agreement to another person or entity without the developer's consent. However, there is a condition. The person or entity that B Bops assigns the agreement to must agree in writing to assume the obligations outlined in the original development agreement.

This clause protects the developer to some extent, ensuring that the new party taking over the agreement is legally bound to fulfill the promises and responsibilities initially agreed upon. It is a fairly standard practice in franchising to allow the franchisor to assign agreements, as business structures and ownership can change over time.

However, the developer should carefully consider the implications of this clause. While the new party must assume the obligations, the developer has little control over who B Bops might assign the agreement to. This could potentially lead to working with a less experienced or less financially stable entity, which could impact the success of the development plan. It would be prudent for a prospective developer to discuss with B Bops what criteria they use when considering assigning an agreement to a third party.