Does B Bops require prior written approval for the transfer of the franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- ASSIGNMENT BY FRANCHISEE. Franchisee acknowledges that the rights and duties created pursuant to this Agreement are personal to Franchisee and its owners and that Company has granted the Franchise in reliance upon the character, skill, business ability, financial capacity and attitude of Franchisee and its owners. Therefore, without the prior written approval of Company, neither this Agreement nor the Franchise (or any interest therein), nor any controlling ownership interest in Franchisee, may be directly or indirectly, voluntarily or by operation of law, sold, assigned, conveyed, sublet, subfranchised or otherwise transferred to any person or entity. Any sale, assignment, conveyance, subfranchising or other transfer, including, without limitation, any transfer or issuance of capital stock or partnership or membership interests in Franchisee, any merger or consolidation, any transfer by decree in any divorce proceeding or by will or inheritance upon death of Franchisee or any owner thereof (hereinafter collectively referred to as "transfer") in violation of this Section 19 shall be void and confer no rights upon any third person. Company shall not unreasonably withhold its consent to any transfer when requested, provided that such transfer complies with the following requirements that may be applicable to the particular type of transfer:
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from B Bops to transfer their franchise. B Bops emphasizes that the franchise rights are personal to the franchisee, and the company grants the franchise based on the franchisee's character, skills, business ability, financial capacity, and attitude.
This requirement means that a franchisee cannot sell, assign, convey, sublet, subfranchise, or otherwise transfer the franchise without B Bops's permission. This restriction extends to any controlling ownership interest in the franchise. Any transfer that violates this provision is considered void and does not grant any rights to a third party.
B Bops states that it will not unreasonably withhold consent to a transfer, provided the transfer complies with specific requirements. These requirements are detailed in Section 19 of the franchise agreement and address various scenarios, such as transfers to a successor entity, handling the death or disability of the franchisee, and other types of transfers. B Bops also retains a right of first refusal, allowing it to purchase the franchise on the same terms as any offer the franchisee receives from a third party.
These stipulations are typical in franchising, as they allow B Bops to maintain control over who operates its franchises and to ensure that new franchisees meet its standards. Prospective franchisees should carefully review Section 19 of the franchise agreement to understand all the conditions and procedures related to transferring their B Bops franchise.