After the B Bops agreement ends, does the non-compete apply to locations owned by affiliates of the B Bops company?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
e parties hereto.
- B. Developer hereby agrees that for a period of two (2) years immediately following the termination or expiration of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant operating at any location within the Trade Area or within a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under construction, whether owned and operated by Company, any affiliate of Company or by a franchisee under license granted by Company, except that Developer shall be entitled to continue to own and operate any Unit pursuant to a Unit Franchise Agreement entered into between the parties hereto.
- C. For purposes of this Section 12, a business shall be deemed the "same as or substantially similar to a B-Bop's Restaurant" if the business is engaged in preparing and serving to the public any food items included from time to time as a standard menu item for a B-Bop's Restaurant.
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- ASSIGNMENT BY DEVELOPER.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, the non-compete agreement extends to locations owned by B Bops's affiliates after the termination or expiration of the Development Agreement. Specifically, for two years following the end of the agreement, the developer (franchisee) and their associated parties (directors, officers, shareholders, etc.) are restricted from engaging in a similar business.
This restriction applies within the Trade Area or within a 20-mile radius of any B Bops restaurant that is operating or under construction. This includes restaurants owned and operated by B Bops, its affiliates, or other franchisees. The only exception is that the developer can continue to operate any B Bops unit under a Unit Franchise Agreement that they have with the company.
For a prospective franchisee, this means that after the Development Agreement concludes, they cannot open a competing restaurant within the specified area, even if that restaurant is under the umbrella of an affiliated company. This non-compete clause is designed to protect B Bops's market share and brand integrity. The definition of a competing business is one that prepares and serves food items that are standard menu items at B Bops.