What right of first refusal provisions must be complied with when transferring a B Bops 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.
If Company elects not to exercise the right of first refusal and the terms of the unaccepted offer are altered in any material nature, Company shall, in each instance, be notified in writing of the revised offer and shall again have thirty (30) days to purchase the Franchise or such partner's, shareholder's or member's interest in Franchisee on the revised terms.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if a franchisee or any of its partners, shareholders, or members wants to sell or transfer the franchise or their ownership interest, they must first obtain a bona fide, executed written offer from a proposed purchaser. An exact copy of this offer must then be submitted to B Bops.
B Bops then has the right and option, exercisable within 30 days of receiving the offer, to purchase the franchise or the ownership interest on the same terms and conditions as the offer. To assist B Bops in making this decision, the franchisee must provide any information regarding the franchise's operation that B Bops reasonably requests. If B Bops exercises its right of first refusal, the closing of the transaction must occur within 120 days from the acceptance of the offer, unless otherwise agreed upon by both parties.
If B Bops decides not to exercise its right of first refusal, the franchisee can proceed with the transfer to the proposed purchaser, but must still comply with Section 19(C) of the agreement, which includes obtaining B Bops's prior written consent. Furthermore, if the terms of the unaccepted offer are materially altered, B Bops must be notified in writing of the revised offer and will again have 30 days to purchase the franchise or ownership interest on the revised terms.