When transferring a B Bops franchise, who must execute a general release of all claims against the company?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) Franchisee (and such partners, shareholders or members thereof as Company may direct), or the individual partner, shareholder or members thereof proposing to make such transfer, shall execute a general release of all claims against Company and its affiliates and their respective directors, officers, agents and employees;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, when transferring a franchise, the franchisee, along with partners, shareholders, or members as directed by B Bops, or the individual partner, shareholder, or members proposing the transfer, must execute a general release of all claims against B Bops and its affiliates. This release extends to their respective directors, officers, agents, and employees.
This requirement means that anyone involved in the ownership or management of the B Bops franchise being transferred may be required to sign a release, giving up any existing or future claims against the company. The breadth of this release, covering B Bops, its affiliates, and their personnel, is typical in franchising to prevent future litigation or disputes arising from the previous franchisee's operation.
However, the FDD also notes an exception: the release shall not apply to any claims arising under Minnesota Statutes Chapter 80C. This indicates that franchisees in Minnesota retain certain statutory rights that cannot be waived through this general release. Prospective franchisees should consult with a legal professional to fully understand the implications of this release and any applicable state-specific protections.