Does B Bops have the right to approve all transfers of the Development Agreement?
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. |
| Q. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the company does have specific conditions for approving the transfer of a Development Agreement.
The FDD states that the proposed transferee must meet B Bops's current standards for new developers. Additionally, the transferee must assume the Development Agreement and execute a general release (if permitted by Minnesota law), along with a nondisclosure and noncompetition agreement. A transfer fee of $3,000 is required, and the transferee must comply with the transfer provisions of the Franchise Agreement if any franchises are simultaneously being transferred.
Furthermore, B Bops retains a right of first refusal to acquire the development rights. This means that B Bops has the option to purchase the development rights or any ownership interest in the entity owning those rights, matching the terms of any legitimate offer from a third party. In the event of death or disability, the development rights must be transferred to an approved transferee, and B Bops must be notified of the proposed transferee within six months.