If a B Bops franchisee becomes permanently mentally disabled, who is responsible for applying to transfer the franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of death or permanent mental or physical disability of Franchisee, or any partner, shareholder or member owning a controlling interest in Franchisee, the legal representative of Franchisee, or such partner, shareholder or member thereof, together with all surviving partners, shareholders or members, if any, jointly, shall, within six (6) months of such event apply in writing for the right to transfer the Franchise, or the controlling ownership interest of the deceased or disabled partner, shareholder or member in Franchisee, to such person or persons as the legal representative may specify.
Consent to such transfer (including transfers by devise or inheritance) will not unreasonably be withheld by Company, provided that Company may in its discretion require that such transfer comply with one or more of the conditions set forth in Section 19(C) hereof, except that: (i) payment of the transfer fee shall not be required; and (ii) the legal representative need not comply with Company's right of first refusal if the transferee is a member of the immediate family of Franchisee or to a member of the immediate family of the deceased or disabled partner, shareholder or member.
If the legal representative and any surviving partners, shareholders or members fail to comply with the provisions of this Section 19(B), or do not propose a transferee acceptable to Company, this Agreement and the Franchise granted hereunder may be terminated in accordance with the provisions of Section 23 hereof.
Any transfer of a noncontrolling ownership interest in Franchisee upon the death or disability of a partner, shareholder or member shall be deemed approved by Company upon receipt by Company of written notice of such transfer.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, in the event a franchisee experiences permanent mental or physical disability, the responsibility for applying to transfer the franchise lies with the legal representative of the franchisee, or any partner, shareholder, or member owning a controlling interest in the franchisee, along with any surviving partners, shareholders, or members. These parties must jointly apply in writing for the right to transfer the franchise within six months of the event.
B Bops will not unreasonably withhold consent to the transfer, including transfers by devise or inheritance. However, B Bops may require the transfer to comply with certain conditions, such as those outlined in Section 19(C) of the franchise agreement. There are exceptions to this, including that payment of the transfer fee is not required, and the legal representative does not need to comply with B Bops's right of first refusal if the transferee is an immediate family member of the franchisee or of the deceased or disabled partner, shareholder, or member.
Failure to comply with these provisions or propose an acceptable transferee may result in the termination of the franchise agreement. Any transfer of a noncontrolling ownership interest in the franchisee due to death or disability is considered approved by B Bops upon written notice.