factual

Can B Bops unreasonably withhold consent to a transfer of the franchise after the death or disability of the franchisee?

B_Bops Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event of death or permanent mental or physical disability of Franchisee, or any partner, shareholder or member owning a controlling interest in Franchisee, the legal representative of Franchisee, or such partner, shareholder or member thereof, together with all surviving partners, shareholders or members, if any, jointly, shall, within six (6) months of such event apply in writing for the right to transfer the Franchise, or the controlling ownership interest of the deceased or disabled partner, shareholder or member in Franchisee, to such person or persons as the legal representative may specify.

Consent to such transfer (including transfers by devise or inheritance) will not unreasonably be withheld by Company, provided that Company may in its discretion require that such transfer comply with one or more of the conditions set forth in Section 19(C) hereof, except that: (i) payment of the transfer fee shall not be required; and (ii) the legal representative need not comply with Company's right of first refusal if the transferee is a member of the immediate family of Franchisee or to a member of the immediate family of the deceased or disabled partner, shareholder or member.

If the legal representative and any surviving partners, shareholders or members fail to comply with the provisions of this Section 19(B), or do not propose a transferee acceptable to Company, this Agreement and the Franchise granted hereunder may be terminated in accordance with the provisions of Section 23 hereof.

Any transfer of a noncontrolling ownership interest in Franchisee upon the death or disability of a partner, shareholder or member shall be deemed approved by Company upon receipt by Company of written notice of such transfer.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to B Bops's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of the franchisee (or a partner, shareholder, or member owning a controlling interest), the legal representative has six months to apply in writing for the right to transfer the franchise. B Bops will not unreasonably withhold consent to this transfer.

However, B Bops can require that the transfer comply with certain conditions outlined in Section 19(C) of the franchise agreement. The FDD specifies two exceptions to these conditions: the transfer fee is waived, and the legal representative does not need to comply with B Bops's right of first refusal if the transferee is an immediate family member of the franchisee or the deceased/disabled party.

If the legal representative fails to comply with these provisions or proposes a transferee unacceptable to B Bops, the franchise agreement may be terminated according to Section 23. A transfer of a noncontrolling ownership interest upon death or disability is automatically approved upon written notice to B Bops.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.