Within what timeframe must B Bops be notified of a proposed transferee after the death or disability of the developer?
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. |
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, in the event of the death or disability of a developer, the development rights or any controlling interest in the entity owning the development rights must be transferred to an approved transferee. B Bops must be notified of the proposed transferee within six months of the death or disability.
This requirement ensures that the development rights are managed and transferred in a timely manner, preventing potential disruptions to B Bops's expansion plans. The six-month notification period allows sufficient time for the developer's estate or representatives to identify and propose a qualified transferee.
It is important to note that the proposed transferee must be approved by B Bops, indicating that the transferee must meet the company's standards for new developers. This condition protects B Bops's interests by ensuring that the new developer has the necessary qualifications and resources to continue developing the franchise successfully. Prospective franchisees should carefully review Section 13(B) of the Development Agreement for a complete understanding of the transfer requirements and approval process.