What happens to my B Bops development rights if I die or become disabled?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| M. Conditions for the Company approval of transfer | Section 13 | Proposed transferee must satisfy the Company's current standards for new developers; assumption of Development Agreement; execution of general release (to the extent permitted by Minnesota law) and nondisclosure and noncompetition agreement; payment of $3,000 transfer fee; compliance with transfer provisions of Franchise Agreement if any Franchises simultaneously being transferred; and compliance with right of first refusal granted to the Company. |
|---|---|---|
| N. The Company's right of first refusal to acquire your development rights | Section 13(D) | The Company has the right to purchase the development rights or any ownership interest in the entity owning the development rights upon the same terms and conditions as contained in any bona fide offer received from a third party. |
| O. The Company's option to | None | Not applicable. |
| purchase your development | ||
| rights | ||
| P. Your death or disability | Section 13(B) | The development rights, or any controlling interest in any entity owning the development rights, must be transferred to an approved transferee, with the Company to be notified of the proposed transferee within six (6) months of death or disability. |
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, in the event of death or disability, the development rights or any controlling interest in an entity owning the development rights must be transferred to an approved transferee. The company must be notified of the proposed transferee within six months of the death or disability.
This provision ensures business continuity and protects the B Bops brand by requiring that development rights are transferred to a qualified and approved party. The six-month notification window provides a reasonable timeframe for the franchisee's estate or representative to find a suitable transferee and complete the necessary arrangements.
It is important for a prospective B Bops franchisee to understand the criteria for an "approved transferee" and the steps involved in the transfer process. This information would likely be detailed in the Development Agreement, which the FDD references. Franchisees should also consider estate planning to facilitate a smooth transfer of their development rights in the event of death or disability, ensuring that their investment can be passed on to a qualified successor.