What is the Developer's responsibility to comply with the terms and conditions of the B Bops Agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Company hereby grants to Developer, subject to the terms and conditions of this Agreement, the exclusive right to develop B-Bop's Restaurants in the Trade Area in compliance with the Development Schedule. Developer hereby agrees to develop, construct and open for business B-Bop's
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Restaurants within the Trade Area in accordance with the Development Schedule and with the terms and conditions of this Agreement. Developer further agrees to develop, own, operate, maintain and promote each B-Bop's Restaurant (hereinafter referred to as a "Unit") in accordance with the terms and conditions contained in the standard form of franchise agreement being utilized by Company to grant B-Bop's Restaurant franchises at the time of development of each such Unit (hereinafter referred to as a "Unit Franchise Agreement"), to be executed by Developer as specified in Section 6 hereof. Company agrees that it shall not establish, or license any third party to establish, a B-Bop's Restaurant in the Trade Area prior to the termination or expiration of this Agreement.
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.
ASSIGNMENT BY DEVELOPER.
Developer acknowledges that the rights and duties created pursuant to this Agreement are personal to Developer and its owners and that Company has granted the development rights in reliance upon the character, skill, business ability, financial capacity and attitude of Developer and its owners.
Therefore, without the prior written approval of Company, neither this Agreement nor the development rights (or any interest therein), nor any controlling ownership interest in Developer may be directly or indirectly, voluntarily or by operation of law, sold, assigned, conveyed, sublet, subfranchised or otherwise transferred (hereinafter collectively referred to as a "transfer") to any person or entity.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, a Developer is granted the exclusive right to develop B Bops Restaurants within a specific Trade Area, but this right is subject to the terms and conditions of the Multiple-Unit Development Agreement. The Developer must construct and open B Bops Restaurants in accordance with the Development Schedule and the terms outlined in the Agreement. Furthermore, each B Bops Restaurant (referred to as a 'Unit') must be developed, owned, operated, maintained, and promoted according to the standard Unit Franchise Agreement used by B Bops at the time of each Unit's development. The company will not establish or license any third party to establish a B Bops Restaurant in the Trade Area before the termination or expiration of the agreement.
The Developer is required to adhere to a non-compete covenant, preventing them (including their directors, officers, shareholders, etc.) from engaging in any business substantially similar to a B Bops Restaurant during the term of the Agreement. This restriction applies both within the Trade Area and within a 20-mile radius of any other B Bops Restaurant in operation or under construction. However, the Developer can continue to operate any Unit under a Unit Franchise Agreement. A business is considered 'substantially similar' if it prepares and serves food items that are standard menu items for a B Bops Restaurant.
The Agreement specifies that the rights and duties are personal to the Developer and its owners, and B Bops has granted development rights based on the Developer's character, skills, business ability, financial capacity, and attitude. Therefore, the Developer cannot sell, assign, or transfer the Agreement, development rights, or any controlling ownership interest without prior written approval from B Bops. Failure to comply with these terms can result in termination of the Agreement, preventing the Developer from further developing sites, although existing Unit Franchise Agreements remain in effect unless terminated according to their own terms.