Does the B Bops FDD allow for transfer of development rights by devise or inheritance?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
ity of Developer. In the event of death or permanent mental or physical disability of Developer, or any partner, shareholder or member owning a controlling interest in Developer, the legal representative of Developer, or such partner, shareholder or member thereof, together with all surviving partners, shareholders or members, if any, jointly, shall, within six (6) months of such event apply in writing for the right to transfer the development rights, or the controlling ownership interest of the deceased or disabled partner, shareholder or member in Developer, to such person or persons as the legal representative may specify. Consent to such transfer (including transfers by devise or inheritance) will not unreasonably be withheld by Company, provided that Company may in its discretion require that such transfer comply with one
or more of the conditions set forth in Section 13(C) hereof, except that: (i) payment of the transfer fee shall not be required; and (ii) the legal representative need not comply with Company's right of first refusal if the transfer is to be a member of the immediate family of Developer or to a member of the immediate family of the deceased or disabled partner, shareholder or member. If the legal representative and any surviving partners, shareholders or members fail to comply with the provisions of this Section 13(B), or do not propose a transferee acceptable to Company, this Agreement and the development rights granted hereunder may be terminated in accordance with the provisions of Section 11 hereof. Any transfer of a noncontrolling ownership interest in Developer upon the death or disability of a partner, shareholder or member shall be deemed approved by Company upon receipt by Company of written notice of such transfer.
- C. Other Transfers.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the transfer of development rights by devise or inheritance is permitted under specific conditions. In the event of the death or permanent disability of the developer, or a partner, shareholder, or member owning a controlling interest, the legal representative has six months to apply in writing for the right to transfer the development rights or the controlling ownership interest. This transfer can include transfers by devise or inheritance.
B Bops will not unreasonably withhold consent for such a transfer, but they may require compliance with certain conditions outlined in Section 13(C) of the agreement. However, two exceptions apply: the payment of a transfer fee is not required, and the legal representative does not need to comply with B Bops's right of first refusal if the transfer is to an immediate family member of the developer or the deceased/disabled party.
If the legal representative and any surviving partners, shareholders, or members fail to comply with these provisions or propose an unacceptable transferee, B Bops may terminate the development agreement and the associated development rights. Additionally, the transfer of a noncontrolling ownership interest upon death or disability is considered approved upon written notice to B Bops. This clause ensures that the B Bops franchise can continue operating even in unforeseen circumstances, while also protecting the interests of the franchisor.