Is the applicant prohibited from operating a competing business while the B Bops Application Agreement is in effect?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
12. COVENANT NOT TO COMPETE.
- A. Developer hereby agrees that during the term 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, except for any Unit owned and operated by Developer pursuant to a Unit Franchise Agreement entered into between the 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.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, the Application Agreement includes a covenant not to compete. During the term of the Application Agreement, the applicant, its directors, officers, shareholders, partners, members, principals, or agents are prohibited from directly or indirectly engaging in any business that is the same as or substantially similar to a B Bops Restaurant. An exception exists for any B Bops unit owned and operated by the applicant under a Unit Franchise Agreement with B Bops.
Following the termination or expiration of the Application Agreement, the applicant is restricted from engaging in a similar business for two years. This restriction applies to any location within the Trade Area or within a 20-mile radius of any operating or under-construction B Bops Restaurant. This includes restaurants owned and operated by B Bops, its affiliates, or other franchisees. However, the applicant can continue to own and operate any unit under a Unit Franchise Agreement.
A business is considered "the same as or substantially similar to a B-Bop's Restaurant" if it prepares and serves to the public any food items included as a standard menu item for a B Bops Restaurant. This non-compete agreement ensures that applicants cannot use confidential information or knowledge gained during the application phase to directly compete with B Bops, protecting the brand's market position and operational methods.