Can a B Bops developer transfer the development rights to a subfranchisee?
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, developers are restricted from transferring development rights to a subfranchisee without prior written approval from B Bops. Specifically, the document states that development rights cannot be "sublet, subfranchised or otherwise transferred" without the company's approval.
This restriction is in place because B Bops grants development rights based on the "character, skill, business ability, financial capacity and attitude" of the developer and their owners. This suggests that B Bops wants to ensure that anyone taking over development responsibilities meets their standards.
If a B Bops developer wishes to transfer their rights, they must seek approval from B Bops. The franchisor also has the right of first refusal. This means that if the developer receives an offer to purchase the development rights, B Bops has the option to match that offer and purchase the rights themselves. The FDD specifies that the developer must provide B Bops with a copy of the offer, and B Bops has 30 days to decide whether to exercise its right of first refusal.