What is the definition of 'Licensed System' in the context of a terminated B Bops franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
ON OR EXPIRATION. Upon termination of this Agreement, or upon expiration of the Term of this Agreement without renewal, Franchisee agrees as follows:
- A. Franchisee shall no longer be entitled to operate a B-Bop's Restaurant on the Franchise Premises or at any other location, nor in any other manner at any location whatsoever utilize all or any portion of the Licensed System (including, but not limited to, the proprietary recipes) or any of the Licensed Marks, provided that termination or expiration of this Agreement shall not affect the right of Franchisee to operate any other B-Bop's Restaurant in accordance with the terms of a franchise agreement between the parties;
- B. Franchisee shall cease to hold itself out to the public as being a B-Bop's Restaurant and shall avoid any other conduct which would suggest or indicate any relationship between Company and Franchisee, except to the extent permitted by paragraph A above;
- C. Franchisee shall pay Company or its affiliates on demand all fees and
amounts then owing to Company or its affiliates under the terms of this Agreement and any other amounts owing to Company or its affiliates under any other agreement relating to the Franchise;
- D. Franchisee shall immediately discontinue all use and display of the Licensed Marks and shall remove from the Franchise Premises any and all signs, emblems, fixtures, furniture, supplies, promotional materials, stationery, printed forms or other materials which display any of the Licensed Marks or feature any of the distinguishing characteristics of the Licensed System;
- E.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the "Licensed System" is defined within the context of the franchise agreement and its termination. Upon termination or expiration of the franchise agreement, the franchisee is no longer permitted to operate a B Bops Restaurant using any portion of the Licensed System. This includes the proprietary recipes and Licensed Marks, ensuring that the franchisee cannot continue to benefit from B Bops's established brand and operational methods after the agreement ends.
More specifically, the franchisee must cease presenting themselves as a B Bops Restaurant and avoid any conduct that suggests a relationship with B Bops, except if they operate other B Bops Restaurants under separate agreements. This prevents confusion among customers and protects B Bops's brand identity. The franchisee is also required to discontinue all use and display of the Licensed Marks, removing all signs, emblems, fixtures, and promotional materials that feature the B Bops branding or distinctive elements of the Licensed System.
Furthermore, the franchisee is obligated to modify the exterior and interior of the franchise premises to effectively distinguish it from its former appearance and from other B Bops Restaurants. This includes discontinuing the use of the unique blue color scheme, which is a key characteristic of the Licensed System. These measures ensure that a terminated franchisee cannot unfairly capitalize on B Bops's goodwill and brand recognition after the franchise agreement has ended.