Can a B Bops developer transfer the development rights through operation of law?
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's 2025 Franchise Disclosure Document, the development rights granted to a developer are personal, and B Bops has granted these rights based on the developer's character, skills, business ability, financial capacity, and attitude. As such, the agreement specifies that neither the agreement nor the development rights can be transferred directly or indirectly, voluntarily or by operation of law, without the prior written approval of B Bops. This includes any controlling ownership interest in the developer.
This restriction means that a B Bops developer cannot transfer their rights automatically through legal mechanisms like inheritance or court order without B Bops's consent. This provision is designed to ensure that any new entity or individual taking over the development rights meets B Bops's standards and qualifications.
However, in the event of the death or permanent disability of the developer (or a controlling owner), the legal representative has six months to apply in writing for the right to transfer the development rights or ownership interest. While B Bops will not unreasonably withhold consent, they may require the transfer to comply with certain conditions. Any change of 50% or more in ownership is considered a transfer subject to these conditions.
For a prospective B Bops developer, this means that exiting the agreement and transferring rights is not a straightforward process and requires franchisor approval. It also highlights the importance of having a succession plan in place to address unforeseen circumstances such as death or disability, to ensure a smooth transition that is acceptable to B Bops.