Does the B Bops agreement require the franchisee to acknowledge the fairness and reasonableness of the non-compete restrictions?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the time and geographic restrictions set forth herein are fair and reasonable restrictions that provide necessary protection of
Company's interest in the Licensed System, the Licensed Marks and Company's ability to sell additional franchises. In the event Franchisee is a natural person, Franchisee represents and warrants that he has available to him sufficient other means of support and that observance of the covenants contained in this Section 17 will not deprive him of his ability to earn a livelihood or support his dependents. The provisions of this Section 17 shall survive the termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchisee must acknowledge that the non-compete restrictions are fair and reasonable. Specifically, the franchisee acknowledges that the time and geographic restrictions are fair and provide necessary protection for B Bops's interest in the Licensed System, Licensed Marks, and the company's ability to sell additional franchises.
For individual franchisees, the agreement includes a representation and warranty that they have sufficient other means of support. This ensures that adhering to the non-compete will not deprive them of their ability to earn a livelihood or support their dependents. This acknowledgement is part of Section 17 of the franchise agreement, and its provisions survive the termination or expiration of the agreement.
This acknowledgement is a standard practice in franchising, intended to strengthen the enforceability of the non-compete clause. By agreeing upfront that the restrictions are reasonable, a franchisee may find it more difficult to challenge the non-compete in court later on. The inclusion of a statement regarding the franchisee's ability to earn a livelihood is likely intended to further support the reasonableness of the clause, especially for individual franchisees.