Does the B Bops agreement state that the time and geographic restrictions are fair and reasonable?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
le by such court. 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.
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- RENEWAL OF FRANCHISE. The Franchise granted hereunder may be renewed at the option of Franchisee upon the expiration of the Term of this Agreement for one (1) additional ten (10) year term upon the same terms and conditions as for initial franchises being offered by Company at the time of such expiration, provided that:
- A. Franchisee gives Company written notice of its election to renew not less than six (6) months, nor more than twelve (12) months, prior to the expiration of the Term;
- B.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchise agreement includes an acknowledgement from the franchisee that the time and geographic restrictions are considered fair and reasonable. Specifically, the franchisee agrees that these restrictions are necessary to protect B Bops's interest in its licensed system, licensed marks, and the company's ability to sell additional franchises. This acknowledgement signifies the franchisee's understanding and acceptance of the non-compete terms.
In practical terms, this means that a franchisee acknowledges the legitimacy of the restrictions placed on them regarding operating a similar business after the franchise agreement ends. This acknowledgement could be important if there were ever a legal dispute regarding the enforceability of these restrictions. The agreement also states that even if a court finds the restrictions too broad, the parties agree to accept the court's determination of what constitutes a reasonable time period or geographic area.
Furthermore, if the franchisee is a natural person, they also represent and warrant that they have sufficient other means of support and that adhering to these non-compete agreements will not deprive them of their ability to earn a living or support their dependents. This clause aims to ensure that the franchisee is not unduly burdened by the restrictions. The non-compete provisions remain in effect even after the termination or expiration of the franchise agreement, reinforcing their importance to B Bops.