What sections of the B Bops franchise agreement apply to a change in ownership interests of 50% or more?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is a partnership, corporation or limited liability company, Franchisee agrees to notify Company of any change in ownership interests in Franchisee which, when taken alone or together with all previous or simultaneous changes of ownership during the Term hereof, constitutes a change of ten percent (10%) or more of the ownership interests 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a change in ownership interests of 50% or more is addressed in the franchise agreement. Specifically, if a franchisee experiences a change in ownership of 10% or more, B Bops requires notification. However, a change of 50% or more is treated as a transfer of the franchise itself. This means that the provisions outlined in Sections 19(C) and 19(D) of the franchise agreement would apply.
Section 19(C) likely details the conditions and requirements that must be met for a transfer to be approved by B Bops. These conditions often include the transferee meeting certain qualifications, such as demonstrating good moral character, financial capacity, and business acumen. The franchisee will need to provide B Bops with the necessary information to assess the proposed transferee's suitability.
Section 19(D) is not included in the provided excerpts, so the specific details of that section are not available. A prospective franchisee should review the full franchise agreement and ask B Bops for clarification on the specific requirements and implications detailed in Section 19(D) regarding ownership transfers.