After the B Bops Development Agreement terminates, what is the geographic scope of the non-compete restriction?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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.
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- ASSIGNMENT BY DEVELOPER.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops' 2025 Franchise Disclosure Document, a developer is subject to a non-compete agreement for two years following the termination or expiration of the Development Agreement. This prevents the developer, their directors, officers, shareholders, partners, members, principals, or agents from engaging in a business that is the same as or substantially similar to a B Bops Restaurant.
The geographic scope of this restriction includes any location within the Trade Area defined in the Development Agreement. It also extends to a twenty (20) mile radius of any other B Bops Restaurant that is then in operation or under construction. This applies whether the restaurant is owned and operated by B Bops, an affiliate, or another franchisee.
However, there is an exception: the developer is allowed to continue owning and operating any B Bops Unit under a Unit Franchise Agreement that was entered into with B Bops before the Development Agreement's termination or expiration. This means that even if the Development Agreement ends, the franchisee can continue running existing restaurants, but cannot open new competing restaurants within the restricted area.