Does B Bops have a right of first refusal to acquire my business?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| N. The Company's right of First Refusal to acquire your business | None | Not Applicable. |
|---|---|---|
| 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. |
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, whether B Bops has a right of first refusal depends on whether you are referring to your business or your development rights.
The FDD states that B Bops does not have a right of first refusal to acquire your business. However, B Bops does have the right to purchase your development rights or any ownership interest in the entity owning the development rights. This right is triggered if you receive a bona fide offer from a third party. B Bops can then purchase these rights under the same terms and conditions as the third-party offer.
This distinction is important for prospective franchisees. If you plan to sell your B Bops restaurant, the company cannot simply step in and buy you out. However, if you hold development rights for multiple locations and receive an offer to sell those rights, B Bops has the first opportunity to purchase them, potentially impacting your ability to sell to another buyer.