What specific events related to a partner, shareholder, or member of a B Bops franchisee could trigger termination?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Company may terminate this Agreement without giving advance notice and without providing an opportunity to cure upon the
occurrence of any of the following events:
- (1) Any assignment made for the benefit of Franchisee's creditors, any appointment of a receiver, trustee or similar officer for Franchisee or its assets, the commencement of bankruptcy or other insolvency proceedings by or against Franchisee, or if Franchisee is a partnership, corporation or limited liability company, any of the foregoing occur with respect to any partner, shareholder or member of Franchisee who owns a controlling interest in Franchisee or who has any responsibility for management of Franchisee;
- (2) Conviction or a plea of guilty or no contest by Franchisee or any partner, shareholder or member thereof to any felony or to any crime relating to operation of the Franchise;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the company may terminate the franchise agreement without advance notice or an opportunity to cure if certain events occur involving a partner, shareholder, or member of the franchisee. This applies if the franchisee is a partnership, corporation, or limited liability company.
Specifically, termination can occur if any of the following events happen with respect to a partner, shareholder, or member of the B Bops franchisee who owns a controlling interest or has management responsibilities: an assignment for the benefit of creditors, appointment of a receiver, trustee, or similar officer for their assets, or the commencement of bankruptcy or other insolvency proceedings by or against them.
Additionally, a conviction or plea of guilty or no contest to any felony or crime related to the operation of the B Bops franchise by any partner, shareholder, or member can also result in immediate termination. This clause highlights the importance of ensuring that all individuals with significant ownership or management roles meet the franchisor's standards of financial stability and legal compliance, as their actions can directly impact the franchise agreement.