Under what conditions is the B Bops transfer fee waived when transferring the franchise to an entity?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a transfer fee is generally required for any franchise transfer or transfer of a controlling ownership interest in the entity owning the franchise. However, there are two specific exceptions where the $3,000 transfer fee is waived.
First, if you, as a natural person, transfer the B Bops franchise to an entity where you retain majority ownership and act as the principal executive, the transfer fee is not required. This allows franchisees to incorporate their business for liability or tax purposes without incurring an additional fee, as long as they maintain control.
Second, the transfer fee is also waived if the franchise or controlling ownership interest must be transferred due to your death or disability. This provision helps facilitate the transfer of the B Bops franchise to heirs or other designated parties without imposing an additional financial burden during a difficult time. These exceptions apply not only to franchise transfers but also to transfers of development rights under the Development Agreement.