If I die or become disabled, can my B Bops development rights be transferred to just anyone?
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' 2025 Franchise Disclosure Document, if you die or become disabled, the development rights can't be transferred to just anyone. Section 13(B) states that the development rights, or any controlling interest in an entity owning the development rights, must be transferred to an approved transferee.
B Bops requires that the company be notified of the proposed transferee within six months of your death or disability. This implies that your estate or you (in the case of disability) would need to find a suitable candidate and present them to B Bops for approval.
This process ensures that the person taking over the development rights meets B Bops' standards and is capable of fulfilling the obligations of the Development Agreement. It protects the B Bops brand and the interests of other franchisees by maintaining a consistent level of competence and quality within the franchise system. Prospective franchisees should consider this when planning their estate or business succession, ensuring there is a plan in place to identify and propose an acceptable transferee in the event of death or disability.