What constitutes a 'transfer' of the Development Agreement according to B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| M. Conditions for the Company approval of transfer | Section 13 | Proposed transferee must satisfy the Company's current standards for new developers; assumption of Development Agreement; execution of general release (to the extent permitted by Minnesota law) and nondisclosure and noncompetition agreement; payment of $3,000 transfer fee; compliance with transfer provisions of Franchise Agreement if any Franchises simultaneously being transferred; and compliance with right of first refusal granted to the Company. |
|---|---|---|
| N. The Company's right of first refusal to acquire your development rights | Section 13(D) | The Company has the right to purchase the development rights or any ownership interest in the entity owning the development rights upon the same terms and conditions as contained in any bona fide offer received from a third party. |
| O. The Company's option to | None | Not applicable. |
| purchase your development | ||
| rights | ||
| P. Your death or disability | Section 13(B) | The development rights, or any controlling interest in any entity owning the development rights, must be transferred to an approved transferee, with the Company to be notified of the proposed transferee within six (6) months of death or disability. |
| Q. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if a developer wants to transfer their development rights, the proposed transferee must meet several conditions to gain approval from B Bops. These conditions include satisfying B Bops's current standards for new developers, assuming the Development Agreement, and executing a general release and a non-disclosure and non-competition agreement.
Additionally, the transferee must pay a $3,000 transfer fee. If any franchises are being transferred simultaneously, the transferee must comply with the transfer provisions outlined in the Franchise Agreement. The transferee must also comply with the right of first refusal granted to B Bops, meaning B Bops has the first opportunity to purchase the development rights under the same terms as any offer from a third party.
In the event of the developer's death or disability, the development rights or any controlling interest in the entity owning the development rights must be transferred to an approved transferee. B Bops must be notified of the proposed transferee within six months of the death or disability. These stipulations ensure that B Bops maintains control over who develops their franchises and that any transfer meets their standards and legal requirements.