Does the B Bops agreement define 'Franchise Premises' in relation to the non-compete clause?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
nt with Company);
- B. That for a period of two (2) years immediately following the termination or expiration of this Agreement, Franchisee, its directors, officers, shareholders, partners, members, employees and agents will not, directly or indirectly, enter into or engage in any business as a director, officer, shareholder, proprietor, partner, consultant, employee or in any other position or capacity, which business is engaged in a business the same as or substantially similar to that of a B-Bop's Restaurant within: (i) a twenty (20) mile radius of the Franchise Premises; or (ii) a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under development (except for any other B-Bop's Restaurant owned and operated by Franchisee pursuant to a franchise agreement with Company);
- C. That during the Term of this Agreement and for a period of two (2) years thereafter, Franchisee, its directors, officers, shareholders, partners, members, employees or agents acting individually or through others, will not, directly or indirectly: (i) employ (or contact or solicit for the purpose of seeking to employ) any then current employee of Company or of any other franchisee; (ii) request that any customer of Company or any other franchisee cancel or terminate their business or their relationship with Company or such other franchisee; or (iii) request that any other authorized franchisee of Company cancel or terminate its relationship with Company;
- D.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchise agreement does address the definition of 'Franchise Premises' in relation to the non-compete clause. The agreement states that upon termination or expiration, the franchisee cannot operate a B Bops restaurant on the Franchise Premises or any other location.
Specifically, the B Bops franchisee is restricted from engaging in a similar business within a 20-mile radius of the Franchise Premises or any other B Bops Restaurant in operation or development for two years after the agreement terminates or expires. This restriction applies to the franchisee, their directors, officers, shareholders, partners, members, employees, and agents. The agreement defines a similar business as one that prepares and serves food items included on B Bops' standard menu.
This means that after the franchise agreement ends, a former B Bops franchisee is significantly limited in their ability to open a competing restaurant within a defined radius of their former location or any other B Bops location. This non-compete clause is designed to protect B Bops's market and brand. The agreement also includes a clause that allows a court to modify the time period or geographic area of the non-compete if it is deemed unreasonable.