What does the B Bops franchise agreement require the entity to furnish to the company upon request?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
NTITY 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)
Based on the 2025 B Bops Franchise Disclosure Document, if the franchisee is a partnership, corporation, or limited liability company, there are several requirements. The entity must be newly organized, and its sole activity must be the development and operation of B Bops restaurants, operating under the terms of the franchise agreement. This means the franchisee entity cannot engage in other business ventures outside of B Bops.
The governing documents of the franchisee entity must state that any issuance or transfer of ownership interests is subject to the restrictions outlined in the franchise agreement. This ensures that the franchisor maintains control over who becomes an owner in a B Bops franchise.
Finally, any stock certificate or ownership evidence issued by the entity must have a conspicuous statement that it is subject to all transfer restrictions imposed by the franchise agreement. This is a clear warning to potential investors that ownership is not freely transferable and is subject to B Bops's approval. These stipulations are designed to protect the B Bops brand and ensure consistent operation and management across all franchise locations.