What is the required activity of the transferee when the B Bops company assigns the agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) The transferee, including such partners or shareholders thereof as Company may direct, shall jointly and severally execute one of the following (as Company may direct):
- (a) a written assignment and assumption agreement, in a form satisfactory to Company, whereby the transferee assumes all of Franchisee's obligations under this Agreement; or
- (b) the standard form of franchise agreement then being used by Company to grant new franchises; provided, however, that the term of such agreement shall be for the unexpired portion of the Term of this Agreement and that no greater payments than those required by Sections 9(B) and 9(C) of this Agreement shall be required.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
Based on the 2025 B Bops Franchise Disclosure Document, if B Bops assigns the franchise agreement, the transferee must fulfill specific obligations. The transferee, along with any partners or shareholders as directed by B Bops, is required to execute either a written assignment and assumption agreement or the standard franchise agreement then in use by B Bops.
If the transferee executes the standard franchise agreement, its term will cover the unexpired portion of the original agreement. The payments required will not exceed those outlined in Sections 9(B) and 9(C) of the original agreement. This ensures that the transferee steps into the existing agreement with a clear understanding of their responsibilities and financial obligations.
These requirements ensure that any new party taking over the franchise meets B Bops' standards and is legally bound to uphold the terms of the franchise agreement. For a prospective franchisee, this means that if they ever consider transferring their franchise, the potential transferee will need to meet these conditions to gain approval from B Bops.