What is the consequence of any purported assignment of the B Bops agreement by the Applicant?
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 its owners. B Bops grants development rights based on the developer's character, skills, business acumen, financial stability, and overall attitude.
Therefore, the agreement explicitly states that neither the agreement itself, the development rights, nor any controlling ownership interest in the developer can be directly or indirectly sold, assigned, conveyed, sublet, subfranchised, or otherwise transferred to another party without obtaining prior written approval from B Bops. This restriction applies whether the transfer is voluntary or occurs by operation of law.
This requirement protects B Bops by ensuring that only individuals or entities approved by them can develop B Bops restaurants. This allows B Bops to maintain control over who is expanding their brand and to ensure that those individuals or entities meet their standards. A prospective franchisee should carefully consider this restriction, as it limits their ability to sell or transfer their development rights without B Bops's consent.