What constitutes a change of ten percent or more of the ownership interests in a B Bops franchise?

According to B Bops's 2025 Franchise Disclosure Document, a change of ten percent or more of the ownership interests in a B Bops franchise occurs when a franchisee, be it a partnership, corporation, or limited liability company, experiences a change in ownership interests that, when combined with any previous or simultaneous changes during the term of the agreement, totals ten percent or more.

This means that franchisees must notify B Bops of any ownership changes that meet or exceed this threshold. This requirement allows B Bops to monitor and control who has ownership in their franchises, ensuring that those involved meet their standards and qualifications.

Furthermore, any change in ownership interests that, when taken alone or together with all previous or simultaneous changes in ownership during the Term hereof, constitutes a change of fifty percent (50%) or more of the ownership interests in Franchisee shall be considered a transfer subject to additional provisions outlined in Section 19(C) and 19(D) of the franchise agreement. This indicates a more significant change that triggers a more rigorous review process by B Bops, likely involving transfer fees and re-approval of the new ownership.

For a prospective franchisee, this means carefully tracking and reporting any changes in ownership to B Bops to remain in compliance with the franchise agreement. Failure to do so could result in penalties or even termination of the franchise agreement.