What is the duration of the non-compete period after termination or expiration of the B Bops Development Agreement?
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's 2025 Franchise Disclosure Document, if the Development Agreement is terminated or expires, the developer agrees not to engage in any similar business to B Bops for two years. This restriction applies to any location within the Trade Area or within a 20-mile radius of any B Bops restaurant that is operating or under construction. This includes restaurants owned by B Bops, its affiliates, or other franchisees.
However, the agreement specifies an exception: the developer can continue to own and operate any B Bops unit under a Unit Franchise Agreement that was already in place before the termination or expiration of the Development Agreement. This means that even if the Development Agreement ends, the franchisee can continue running existing B Bops restaurants.
The FDD also defines what constitutes a business "the same as or substantially similar to a B-Bop's Restaurant." It includes any business that prepares and serves food items that are part of B Bops's standard menu. This definition is important because it clarifies the scope of the non-compete agreement, preventing franchisees from circumventing the restriction by opening a restaurant with a slightly different concept but essentially serving the same type of food.