What is the transfer fee for development rights under the Development Agreement for B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a transfer fee of $3,000 is required under the Development Agreement for any transfer of development rights. This fee also applies to the transfer of a controlling ownership interest in the entity that owns the development rights.
There are two exceptions to this transfer fee. The fee is not required if you, as a natural person, transfer the development rights to an entity where you will be the majority owner and principal executive. Additionally, the fee is waived if the transfer of the development rights or controlling ownership interest is a result of your death or disability.
This transfer fee is separate from any fees associated with individual franchise agreements established under the development agreement. The document states that when you execute a standard franchise agreement for each franchise established, you will be required to pay various fees as outlined in the current Franchise Agreement. However, these fees may change in future standard franchise agreements utilized by B Bops.