factual

What is the duration of the non-compete period after the termination or expiration of the B Bops franchise agreement?

B_Bops Franchise · 2025 FDD

Answer from 2025 FDD Document

th Company);

  • B. That for a period of two (2) years immediately following the termination or expiration of this Agreement, Franchisee, its directors, officers, shareholders, partners, members, employees and agents will not, directly or indirectly, enter into or engage in any business as a director, officer, shareholder, proprietor, partner, consultant, employee or in any other position or capacity, which business is engaged in a business the same as or substantially similar to that of a B-Bop's Restaurant within: (i) a twenty (20) mile radius of the Franchise Premises; or (ii) a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under development (except for any other B-Bop's Restaurant owned and operated by Franchisee pursuant to a franchise agreement with Company);
  • C. That during the Term of this Agreement and for a period of two (2) years thereafter, Franchisee, its directors, officers, shareholders, partners, members, employees or agents acting individually or through others, will not, directly or indirectly: (i) employ (or contact or solicit for the purpose of seeking to employ) any then current employee of Company or of any other franchisee; (ii) request that any customer of Company or any other franchisee cancel or terminate their business or their relationship with Company or such other franchisee; or (iii) request that any other authorized franchisee of Company cancel or terminate its relationship with Company;
  • D. For purposes of this Section 17, a business will be deemed to be the "same as or substantially similar to a B-Bop's Restaurant" if it is engaged in preparing and serving to the public any food item from time to time included as a standard menu item for a B-Bop's Restaurant.
  • E. In the event any court of competent jurisdiction makes a final determination that the time period set forth in this Section 17 is excessive, or that the geographic area set forth herein is unreasonable, and said court makes a determination as to a reasonable time period or geographic area, the parties hereto agree that for purposes of this Agreement, the period of time and/or geographic area shall be that which has been determined to be reasonable by such court. Franchisee acknowledges that the time and geographic restrictions set forth herein are fair and reasonable restrictions that provide necessary protection of

Company's interest in the Licensed System, the Licensed Marks and Company's ability to sell additional franchises.

Source: Item 22 — CONTRACTS (FDD page 53)

What This Means (2025 FDD)

According to B Bops's 2025 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, a franchisee is subject to a non-compete period of two years. During this period, the franchisee, along with their directors, officers, shareholders, partners, members, employees, and agents, is prohibited from engaging in any business that is the same as or substantially similar to a B Bops restaurant.

The restriction applies within a 20-mile radius of the former B Bops location or any other B Bops restaurant in operation or under development. This prevents a former franchisee from directly competing with B Bops in close proximity to existing locations. The definition of a business that is "the same as or substantially similar to a B-Bop's Restaurant" includes any business that prepares and serves any food item included as a standard menu item for a B Bops restaurant.

B Bops also includes a provision that if a court finds the time period or geographic area of the non-compete to be excessive, the court can determine a reasonable time period or geographic area, which will then apply to the agreement. This ensures the non-compete is enforceable and reasonable. The FDD states that these restrictions are considered fair and reasonable to protect B Bops's interests in its licensed system and trademarks, as well as its ability to sell additional franchises.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.