When is the B Bops transfer fee due?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| Transfer fee | $3,0003 | Before consummation of the transfer of the Franchise or, if applicable, the development rights. | See footnote 3. |
NOTES:
- 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, the transfer fee of $3,000 is due before the transfer of the franchise is consummated. This applies to the transfer of the entire franchise or a controlling ownership interest in the entity that owns the franchise.
However, there are a couple of exceptions where the transfer fee is not required. First, if the franchisee is a natural person and transfers the franchise to an entity where they will be the majority owner and principal executive, the fee is waived. Second, if the franchise or controlling ownership interest must be transferred due to the franchisee's death or disability, the transfer fee is also not required.
It's important to note that a $3,000 transfer fee also applies under the Development Agreement for any transfer of development rights or a controlling ownership interest in the entity owning those rights, with the same exceptions for transfers to a franchisee-owned entity or due to death/disability. Prospective franchisees should carefully review Item 17 of the FDD for more details on transfer conditions and requirements.