What is the Company prohibited from doing in the Trade Area regarding B Bops Restaurants?

According to B Bops' 2025 Franchise Disclosure Document, the company agrees not to establish or license any third party to establish a B Bops Restaurant in the Trade Area prior to the termination or expiration of the Development Agreement. This agreement grants the developer the exclusive right to develop B Bops Restaurants in a specific geographic area, known as the Trade Area, according to an agreed-upon Development Schedule.

This clause protects the developer's exclusive rights within the Trade Area for the duration of the agreement. It prevents B Bops from directly competing with the developer by opening its own restaurants or allowing other franchisees to open restaurants in the same area. This exclusivity is a key incentive for the developer to invest time and resources into developing the B Bops brand within their designated territory.

However, this protection is only valid until the Development Agreement terminates or expires. After that, B Bops is free to establish its own restaurants or license others in the Trade Area. It is also important to note that this restriction applies specifically to B Bops Restaurants. The developer is restricted from engaging in a similar business to B Bops during the agreement and for two years after termination or expiration of the agreement.