What is the condition for the Company to not establish a B Bops Restaurant in the Trade Area?

According to B Bops's 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. This condition is in effect prior to the termination or expiration of the Development Agreement.

This agreement provides the developer with a protected territory, ensuring that B Bops will not directly compete or allow others to compete within the Trade Area during the term of the agreement. This exclusivity is a significant benefit for the developer, as it allows them to establish and grow their B Bops restaurants without direct competition from the franchisor or other franchisees.

However, this protection is only valid until the Development Agreement terminates or expires. Upon termination or expiration, B Bops is entitled to establish or license others to establish B Bops Restaurants in the Trade Area, except to the extent limited by the terms of any Unit Franchise Agreement executed by B Bops and the developer. Therefore, it is crucial for a prospective developer to understand the terms and conditions of both the Development Agreement and the Unit Franchise Agreement to fully grasp the extent of their protected territory and the duration of the protection.