What is the timeframe for applying to transfer a B Bops franchise after the death of a shareholder owning a controlling interest?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of death or permanent mental or physical disability of Franchisee, or any partner, shareholder or member owning a controlling interest in Franchisee, the legal representative of Franchisee, or such partner, shareholder or member thereof, together with all surviving partners, shareholders or members, if any, jointly, shall, within six (6) months of such event apply in writing for the right to transfer the Franchise, or the controlling ownership interest of the deceased or disabled partner, shareholder or member in Franchisee, to such person or persons as the legal representative may specify.
Consent to such transfer (including transfers by devise or inheritance) will not unreasonably be withheld by Company, provided that Company may in its discretion require that such transfer comply with one or more of the conditions set forth in Section 19(C) hereof, except that: (i) payment of the transfer fee shall not be required; and (ii) the legal representative need not comply with Company's right of first refusal if the transferee is a member of the immediate family of Franchisee or to a member of the immediate family of the deceased or disabled partner, shareholder or member.
If the legal representative and any surviving partners, shareholders or members fail to comply with the provisions of this Section 19(B), or do not propose a transferee acceptable to Company, this Agreement and the Franchise granted hereunder may be terminated in accordance with the provisions of Section 23 hereof.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, in the event of the death of a shareholder owning a controlling interest in the franchise, the legal representative has a specific timeframe to apply for the right to transfer the franchise. This timeframe is crucial for ensuring the continuity of the B Bops franchise and adherence to the franchise agreement.
Specifically, the legal representative of the deceased shareholder, along with any surviving partners, shareholders, or members, must apply in writing for the right to transfer the franchise within six months of the shareholder's death. This application must specify the person or persons to whom the legal representative wishes to transfer the franchise or the controlling ownership interest.
B Bops will not unreasonably withhold consent to such a transfer, including transfers by devise or inheritance. However, B Bops may require that the transfer comply with certain conditions, such as those related to the transferee's qualifications. Importantly, the payment of a transfer fee is waived in this specific scenario, and the legal representative is not required to comply with B Bops's right of first refusal if the transferee is an immediate family member of the deceased shareholder. Failure to comply with these provisions or propose an acceptable transferee may result in the termination of the franchise agreement.