What documents may B Bops require the transferee to execute?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) The transferee, including such partners or shareholders thereof as Company may direct, shall jointly and severally execute one of the following (as Company may direct):
- (a) a written assignment and assumption agreement, in a form satisfactory to Company, whereby the transferee assumes all of Franchisee's obligations under this Agreement; or
- (b) the standard form of franchise agreement then being used by Company to grant new franchises; provided, however, that the term of such agreement shall be for the unexpired portion of the Term of this Agreement and that no greater payments than those required by Sections 9(B) and 9(C) of this Agreement shall be required.
- (4) Franchisee (and such partners, shareholders or members thereof as Company may direct), or the individual partner, shareholder or members thereof proposing to make such transfer, shall execute a general release of all claims against Company and its affiliates and their respective directors, officers, agents and employees;
- (5) Franchisee (and such partners, shareholders or members thereof as Company may direct), or the individual partner, shareholder or member proposing to make the transfer, shall execute a nondisclosure and noncompetition agreement in favor of Company containing the restrictions set forth in Sections 16 and 17 of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a transferee may be required to execute certain documents. B Bops may direct the transferee, including partners or shareholders, to jointly and severally execute either a written assignment and assumption agreement or the standard form of franchise agreement then in use by B Bops. If the standard form of franchise agreement is used, the term will be for the unexpired portion of the original agreement, and payments will be limited to those required by Sections 9(B) and 9(C) of the original agreement.
Additionally, B Bops may require the transferor (the existing franchisee) and their partners, shareholders, or members to execute a general release of all claims against B Bops and its affiliates. They may also need to execute a nondisclosure and noncompetition agreement in favor of B Bops, containing restrictions as outlined in Sections 16 and 17 of the agreement.
These requirements ensure that the transferee is legally bound to the obligations of the franchise agreement and that B Bops is protected from potential liabilities or competitive threats. The transferee must also meet B Bops's current standards for franchisees. These stipulations are typical in franchise agreements to maintain brand consistency and protect the franchisor's interests during a transfer.