What section of the B Bops franchise agreement outlines the right of first refusal provisions?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
ts in Franchisee. Any change in ownership interests which, when taken alone or together with all previous or simultaneous changes in ownership during the Term hereof, constitutes a change of fifty percent (50%) or more of the ownership interests in Franchisee shall be considered a transfer subject to the provisions of Section 19(C) and 19(D) hereof.
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- ENTITY FRANCHISEE. In the event Franchisee is a partnership (general or limited), corporation or limited liability company on the effective date of this Agreement, or if the Franchise or any ownership interest in Franchisee is thereafter transferred to a partnership,
corporation or limited liability company in accordance with the provisions of Section 19(A) hereof, such entity s
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the right of first refusal is addressed in Section 19(C) and 19(D). Specifically, if a franchisee intends to transfer ownership interests of 50% or more, it is considered a transfer subject to these sections. This means that B Bops has the first opportunity to purchase the franchise or the ownership interest before it is offered to a third party.
Additionally, if B Bops chooses not to exercise its right of first refusal, and the terms of the offer change materially, B Bops must be notified in writing of the revised offer and will have another 30 days to decide whether to purchase the franchise under the new terms. This ensures that B Bops has the opportunity to reassess the offer if significant changes are made.
This right of first refusal allows B Bops to maintain control over who becomes a franchisee and ensures that any transfer of ownership aligns with their standards and vision for the brand. For a prospective franchisee, this means that selling a significant portion of their franchise to someone else requires B Bops's approval and that B Bops has the first option to buy the franchise themselves.