In the B Bops franchise agreement, what information must the franchisee provide when signing as an entity?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
ENTITY FRANCHISEE.
In the event Franchisee is a partnership (general or limited), corporation or limited liability company on the effective date of this Agreement, or if the Franchise or any ownership interest in Franchisee is thereafter transferred to a partnership,
corporation or limited liability company in accordance with the provisions of Section 19(A) hereof, such entity shall comply with the following:
(1) The entity shall be newly organized and its activities shall be confined exclusively to the development and operation of B-Bop's Restaurants pursuant to the terms of this Agreement or other franchise agreements with Company;
(2) The governing documents of such entity shall provide that the issuance or transfer of any ownership interests in such entity shall be subject to the restrictions contained in this Agreement;
(3) Any stock certificate or other evidence of ownership issued by such entity, shall have conspicuously endorsed upon it a statement that it is held subject to, and that further assignment or transfer thereof is subject to, all restrictions imposed upon transfer by this Agreement;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, if a franchisee is a partnership, corporation, or limited liability company, certain conditions must be met. The entity must be newly organized, and its activities must be exclusively focused on developing and operating B Bops Restaurants, as outlined in the franchise agreement or other agreements with B Bops.
Furthermore, the governing documents of the entity must state that any issuance or transfer of ownership interests are subject to the restrictions detailed in the franchise agreement. This ensures that control and ownership remain aligned with B Bops's standards and policies.
Finally, any stock certificate or ownership evidence issued by the entity must clearly state that it is subject to all transfer restrictions imposed by the franchise agreement. This measure aims to provide transparency and prevent unauthorized transfers of ownership that could compromise the integrity of the B Bops franchise system.