Are there exceptions to paying the transfer fee for B Bops development rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
3 The transfer fee must be paid in connection with any transfer of the Franchise as a whole or as a result of the transfer of any controlling ownership interest in the entity which owns the Franchise, except that payment of the fee is not required if: (i) you are a natural person and you transfer the Franchise to an entity of which you will be the majority owner and act as the principal executive; or (ii) the Franchise, or a controlling ownership interest in the entity owing the Franchise, must be transferred as a result of your death or disability. A transfer fee of $3,000 must also be paid under the Development Agreement in connection with any transfer of the development rights or any transfer of a controlling ownership interest in the entity which owns the development rights, subject to the same two exceptions noted above. See Item 17 of this disclosure document.
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, there are specific exceptions to the transfer fee for development rights. Generally, a $3,000 transfer fee is required under the Development Agreement for any transfer of development rights or controlling ownership interest in the entity that owns these rights. However, this fee is waived under two specific circumstances.
First, if you, as a natural person, transfer the development rights to an entity where you will be the majority owner and principal executive, the transfer fee is not required. This exception allows for restructuring your business for legal or tax purposes without incurring an additional fee, as long as you maintain control.
Second, the transfer fee is also waived if the development rights or controlling ownership interest must be transferred due to your death or disability. This provision ensures that your estate or family can transfer the rights without the burden of an additional $3,000 fee, providing some financial relief during a difficult time. It is important for prospective franchisees to understand these exceptions, as they can impact future business decisions and estate planning.