Is a B Bops developer allowed to transfer only a portion of their development rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Under no circumstances will Developer be permitted to make any partial transfer of the development rights granted hereunder; any sale, assignment or transfer of this Agreement or the development rights shall require Developer to transfer all of Developer's right, title and interest in and to this Agreement and the development rights.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a developer is not allowed to make a partial transfer of their development rights. Any transfer of the development rights requires the developer to transfer all of their rights, title, and interest in the agreement and the development rights.
B Bops does state that the company will not unreasonably withhold consent to any transfer request. However, the transfer must comply with specific requirements. If the developer is an individual and wants to transfer the rights to a business entity like a partnership, corporation, or LLC, B Bops will not unreasonably withhold consent if the entity meets certain conditions. These conditions include complying with ownership requirements for entities, the developer owning a majority of the entity's equity and voting securities, the developer being the entity's principal executive, all money obligations to B Bops being satisfied, and the entity agreeing to assume all of the developer's obligations.
In the event of the death or disability of the developer, or a partner/shareholder with controlling interest, the legal representative has six months to apply for the right to transfer the development rights or the ownership interest. B Bops will not unreasonably withhold consent, but may require compliance with conditions outlined in Section 13(C), except that a transfer fee is not required, and the right of first refusal does not apply if the transfer is to an immediate family member. If the legal representative fails to comply or propose an acceptable transferee, the agreement may be terminated. Transfer of a noncontrolling ownership interest upon death or disability is deemed approved upon written notice to B Bops.
Therefore, a B Bops developer must transfer all rights and interests in the development agreement, and any transfer is subject to B Bops's approval and specific conditions. This ensures that B Bops maintains control over who is developing their franchises and that the new developer meets their standards.