How long does B Bops have to exercise its right of first refusal to purchase a franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee, or any partner, shareholder or member thereof, shall at any time determine to sell, convey or otherwise transfer the Franchise or any partner's, shareholder's or member's ownership interest in Franchisee which would be subject to the provisions of Section 19(C) hereof, Franchisee or such partner, shareholder or member shall obtain a bona fide, executed written offer from the proposed purchaser and shall submit an exact copy of such offer to Company.
Company (or any affiliate of Company designated by Company) shall have the right and option, exercisable by written notice to Franchisee or such partner, shareholder or member thereof within thirty (30) days of the date of receipt by Company of a copy of such offer, to purchase the Franchise or such partner's, shareholder's or member's ownership interest in Franchisee for the price and on the same terms and conditions contained in such offer.
Franchisee agrees to submit to Company such information regarding the operation of the Franchise as the Company may reasonably request in order to assist Company in determining whether to exercise its option.
In the event Company (or any affiliate thereof) exercises its right of first refusal, closing of the transaction shall occur within one hundred twenty (120) days from the acceptance of such offer, unless otherwise agreed by the parties.
If Company does not exercise its right of first refusal, Franchisee or such partner, shareholder or member may complete the transfer to the proposed purchaser pursuant to and in accordance with the terms of such offer, subject to compliance with the provisions of Section 19(C) hereof, which shall include obtaining the prior written consent of Company.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops has 30 days to exercise its right of first refusal. If a franchisee or their partner, shareholder, or member decides to sell their franchise or ownership interest, they must first obtain a written offer from a potential buyer and provide a copy to B Bops.
Within 30 days of receiving this offer, B Bops has the option to purchase the franchise or ownership interest themselves, matching the price and terms of the offer. To help B Bops make this decision, the franchisee must provide any information about the franchise's operations that B Bops reasonably requests.
If B Bops chooses to exercise its right of first refusal, the closing of the transaction must occur within 120 days of accepting the offer, unless both parties agree to a different timeline. If B Bops decides not to exercise its right, the franchisee can proceed with the sale to the original proposed purchaser, provided they comply with the standard transfer provisions, including obtaining B Bops's written consent.