After the B Bops agreement ends, does the non-compete apply to locations owned by other B Bops franchisees?
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 B Bops's 2025 Franchise Disclosure Document, the non-compete agreement extends to locations owned by other B Bops franchisees. Specifically, for two years after the termination or expiration of the Development Agreement, the developer (franchisee) cannot engage in a business similar to a B Bops restaurant within the Trade Area or within a 20-mile radius of any B Bops restaurant. This includes restaurants operated by the company, its affiliates, or other franchisees.
This non-compete restriction prevents a former B Bops developer from leveraging their knowledge of the B Bops system to directly compete with existing B Bops restaurants. The restriction applies regardless of whether the other B Bops restaurant is owned by the company, an affiliate, or another franchisee. The only exception is that the developer can continue to operate any Unit under a Unit Franchise Agreement that they have with B Bops.
For a prospective B Bops franchisee, this means that upon exiting the B Bops system, they will be restricted from opening a competing restaurant within a defined geographic area that includes other B Bops locations. This is a standard practice in franchising to protect the brand and the interests of existing franchisees. The definition of what constitutes a "similar" business is clearly defined as any business engaged in preparing and serving food items included on the standard B Bops menu.