When transferring a B Bops franchise, what are the two options for the agreement between the company and the transferee?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) The transferee, including such partners or shareholders thereof as Company may direct, shall jointly and severally execute one of the following (as Company may direct):
- (a) a written assignment and assumption agreement, in a form satisfactory to Company, whereby the transferee assumes all of Franchisee's obligations under this Agreement; or
- (b) the standard form of franchise agreement then being used by Company to grant new franchises; provided, however, that the term of such agreement shall be for the unexpired portion of the Term of this Agreement and that no greater payments than those required by Sections 9(B) and 9(C) of this Agreement shall be required.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, when transferring a franchise, the transferee must execute one of two agreements, as directed by B Bops. The first option is a written assignment and assumption agreement, satisfactory to B Bops, where the transferee assumes all of the original franchisee's obligations under the existing franchise agreement.
The second option is B Bops' standard franchise agreement then in use for new franchises. However, if this option is chosen, the term of the agreement will only be for the unexpired portion of the original franchise agreement's term. Additionally, the payments required will not exceed those outlined in Sections 9(B) and 9(C) of the original agreement, which likely refer to specific fee structures or payment schedules.
These conditions ensure that B Bops maintains control over who becomes a franchisee and that the financial terms remain consistent with the original agreement, preventing the new franchisee from facing unexpected or increased costs beyond what was initially agreed upon. This provides a level of predictability and fairness in the transfer process, protecting both B Bops' interests and the financial stability of the incoming franchisee.