Can B Bops designate an affiliate to exercise the right of first refusal?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
of First Refusal. If Franchisee, or any partner, shareholder or member thereof, shall at any time determine to sell, convey or otherwise transfer the Franchise or any partner's, shareholder's or member's ownership interest in Franchisee which would be subject to the provisions of Section 19(C) hereof, Franchisee or such partner, shareholder or member shall obtain a bona fide, executed written offer from the proposed purchaser and shall submit an exact copy of such offer to Company. Company (or any affiliate of Company designated by Company) shall have the right and option, exercisable by written notice to Franchisee or such partner, shareholder or member thereof within thirty (30) days of the date of receipt by Company of a copy of such offer, to purchase the Franchise or such partner's, shareholder's or member's ownership interest in Franchisee for the price and on the same terms and conditions contained in such offer. Franchisee agrees to submit to Company such information regarding the operation of the Franchise as the Company may reasonably request in order to assist Company in determining whether to exercise its option. In the event Company (or any affiliate thereof) exercises its right of first refusal, closing of the transaction shall occur within one hundred twenty (120) days from the acceptance of such offer, unless otherwise agreed by the parties.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops has the right to designate an affiliate to exercise the right of first refusal. If a franchisee, partner, shareholder, or member intends to sell or transfer their franchise or ownership interest, they must first obtain a written offer from a proposed purchaser and submit it to B Bops.
B Bops (or any affiliate designated by B Bops) then has the option to purchase the franchise or ownership interest at the same price, terms, and conditions as the offer. This right must be exercised within 30 days of receiving the offer by providing written notice.
If B Bops (or its affiliate) exercises this right, the closing of the transaction must occur within 120 days from the acceptance of the offer, unless both parties agree otherwise. If B Bops does not exercise its right of first refusal, the franchisee is then permitted to proceed with the transfer to the proposed purchaser, subject to obtaining B Bops's prior written consent and complying with other transfer provisions.