Can a B Bops developer assign the development agreement without B Bops' approval?
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' 2025 Franchise Disclosure Document, a developer cannot assign the development agreement without prior written approval from B Bops. The FDD specifies that the rights and duties within the agreement are personal 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.
This restriction means that a developer cannot transfer the agreement, development rights, or any controlling ownership interest in the developer to another party without B Bops' consent. This includes transfers that are direct, indirect, voluntary, or occur by operation of law. The term "transfer" encompasses selling, assigning, conveying, subletting, subfranchising, or any other form of transfer.
This requirement protects B Bops by ensuring that any new developer or owner meets their standards. It allows B Bops to maintain control over who is developing their franchises and ensures that the new party has the necessary qualifications and resources to successfully develop and operate B Bops restaurants within the designated trade area. Obtaining written approval from B Bops is a critical step for any developer considering a change in ownership or transfer of rights under the development agreement.