Is a B Bops franchisee allowed to transfer or assign the Application Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| D. Termination by You | Sections 4 and 8 | You may terminate at anytime without cause. Upon termination you will be entitled to the amount of the deposit ($5,000) minus the lesser of (i) $4,500 or (ii) the actual expenses incurred by the Company, as provided in the Application Agreement. If the Company determines to grant you development rights or franchise rights (whichever is applicable) and you do not execute and deliver the appropriate documentation and pay the initial franchise fee or development fee, whichever is applicable, within 15 days after receipt of the documents the Application Agreement shall become |
|---|---|---|
| null and void. | ||
| E. Termination by the Company without cause | Sections 4 and 7 | The Company has the right to terminate the Application Agreement at any time without cause. The Application Agreement also terminates in the event the Company advises you that the development rights or franchise rights, whichever is applicable, will not be granted. Upon termination you will be entitled to a refund equal to the amount of the deposit ($2,500) minus the lesser of (i) $2,000 or (ii) the actual expenses incurred by the Company, as provided in the Application Agreement. |
| F. Termination by the | None | Not Applicable. |
| Company with cause | ||
| G. "Cause" defined-curable | None | Not Applicable. |
| H. "Cause" defined-non-curable | None | Not Applicable |
| I. Your obligations Termination/nonrenewal | Section 5 | Upon termination you must return to the Company all confidential information and refrain from any further use of confidential information. |
| J. Assignment of contract | None | Not Applicable. |
| by the Company | ||
| K. "Transfer" by you | Section 10 | You may not transfer or assign the Application Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees are not allowed to transfer or assign the Application Agreement. The Application Agreement outlines the initial steps and conditions before a franchisee can operate a B Bops franchise.
This restriction means that a prospective B Bops franchisee cannot sell or give their rights under the Application Agreement to someone else. This is a fairly standard practice in franchising, as franchisors like B Bops want to carefully control who they grant franchise rights to, starting from the initial application stage.
This policy ensures that B Bops maintains control over who enters into a franchise agreement and helps protect the brand's reputation and standards. If a potential franchisee decides they no longer wish to pursue the franchise after signing the Application Agreement, they cannot simply transfer it to another party; instead, they would typically need to terminate the agreement according to its terms.