What are the exceptions to paying the transfer fee under the B Bops Development Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3 The transfer fee must be paid in connection with any transfer of the Franchise as a whole or as a result of the transfer of any controlling ownership interest in the entity which owns the Franchise, except that payment of the fee is not required if: (i) you are a natural person and you transfer the Franchise to an entity of which you will be the majority owner and act as the principal executive; or (ii) the Franchise, or a controlling ownership interest in the entity owing the Franchise, must be transferred as a result of your death or disability. A transfer fee of $3,000 must also be paid under the Development Agreement in connection with any transfer of the development rights or any transfer of a controlling ownership interest in the entity which owns the development rights, subject to the same two exceptions noted above. See Item 17 of this disclosure document.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a transfer fee of $3,000 is generally required when transferring development rights or a controlling ownership interest in the entity owning those rights. However, there are two specific exceptions where this fee is waived.
First, if you, as a natural person, transfer the development rights to an entity where you retain majority ownership and act as the principal executive, the transfer fee is not required. This exception allows for restructuring your business for legal or tax purposes without incurring an additional fee, as long as you maintain control.
Second, the transfer fee is also waived if the transfer of the development rights or controlling ownership interest is necessitated by your death or disability. This provision ensures that your estate or family can transfer the development rights without the burden of an additional $3,000 fee during a difficult time. These exceptions apply specifically to the $3,000 transfer fee associated with the Development Agreement.