Under what condition can B Bops transfer the Development Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| M. Conditions for the Company approval of transfer | Section 13 | Proposed transferee must satisfy the Company's current standards for new developers; assumption of Development Agreement; execution of general release (to the extent permitted by Minnesota law) and nondisclosure and noncompetition agreement; payment of $3,000 transfer fee; compliance with transfer provisions of Franchise Agreement if any Franchises simultaneously being transferred; and compliance with right of first refusal granted to the Company. |
|---|---|---|
| N. The Company's right of first refusal to acquire your development rights | Section 13(D) | The Company has the right to purchase the development rights or any ownership interest in the entity owning the development rights upon the same terms and conditions as contained in any bona fide offer received from a third party. |
| O. The Company's option to | None | Not applicable. |
| purchase your development | ||
| rights | ||
| P. Your death or disability | Section 13(B) | The development rights, or any controlling interest in any entity owning the development rights, must be transferred to an approved transferee, with the Company to be notified of the proposed transferee within six (6) months of death or disability. |
| Q. Non-competition covenants | Section 12 | No involvement in a business substantially |
| during the term of the | similar to a B-Bop's Restaurant at any | |
| Development Agreement | location. | |
| R. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a franchisee can transfer the Development Agreement if the proposed transferee satisfies B Bops's current standards for new developers. The transferee must also assume the Development Agreement and execute a general release and a non-disclosure and non-competition agreement, to the extent permitted by Minnesota law.
Additionally, the franchisee must pay a $3,000 transfer fee. If any franchises are simultaneously being transferred, the franchisee must comply with the transfer provisions of the Franchise Agreement. The franchisee must also comply with the right of first refusal granted to B Bops.
It is important to note that failure to comply with Section 13 of the Development Agreement regarding transfer of the agreement, development rights, or any ownership interest constitutes a non-curable default. This means B Bops can terminate the Development Agreement immediately without allowing an opportunity to correct the issue.