Does the B Bops Franchise Agreement grant an exclusive territory?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
The extent of the territorial rights granted by the Company varies depending upon whether you are purchasing one Franchise pursuant to the single-unit arrangement or purchasing the right to develop a number of Franchises pursuant to the multiple-unit arrangement.
SINGLE-UNIT ARRANGEMENT
You will be granted an exclusive territory under the Franchise Agreement consisting of the area encompassed within a two (2) mile radius of the Franchise premises. During the term of the Franchise Agreement, the Company and its affiliates are prohibited from opening or franchising a B-Bop's Restaurant or other business serving similar products at any location within your exclusive territory. The Company and its affiliates are entitled under the Franchise Agreement to establish a company-owned B-Bop's Restaurant or grant a Franchise to any third party at any location other than as described above. The continuation of your exclusive territory is not dependent upon achieving a particular sales volume, market penetration or other similar contingency. There are no circumstances under which the Company is entitled to modify your exclusive territory without your consent.
The Franchise is granted for a specific location that must be approved by the Company. Any relocation of the Franchise requires the prior written approval of the Company and is permitted only when use of the original location is no longer possible due to damage or destruction, taking by eminent domain or lapse of the lease (in the absence of a default thereunder).
The Franchise granted by the Company under the single-unit arrangement does not entitle the Franchisee to open additional locations.
Neither the Company nor any of its affiliates currently operate or franchise the operation of a fast food business under a different trademark, and neither the Company nor any of its affiliates have any presently formulated plans to engage in such activity in the future.
There are no restrictions on the customers that may be served by your Franchise and you may solicit or accept orders from customers outside of your exclusive territory and you have the right to use other channels of distribution, such as the Internet or other methods of direct marketing to make sales outside of your exclusive territory. Similarly, there are no restrictions on the Company or its affiliates on the customers that may be served by any B-Bop's Restaurant that either of them may establish (consistent with the exclusive territorial rights granted to you under the Franchise Agreement), including customers that may reside in the exclusive territory granted to you. The Company and its affiliates have never used, but do reserve the right to use, other channels of distribution, including other methods of direct marketing to make sales to customers under the "B-Bop's" trademark, including customers residing within your exclusive territory.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the franchise agreement grants an exclusive territory, but the extent of these rights depends on whether the franchisee is purchasing a single franchise or multiple franchises.
For a single-unit B Bops franchise, the franchisee is granted an exclusive territory consisting of the area within a two-mile radius of the franchise premises. During the term of the Franchise Agreement, B Bops and its affiliates are prohibited from opening or franchising a B-Bop's Restaurant or similar business within this territory. The continuation of the exclusive territory is not dependent on achieving any specific sales volume or market penetration. The company cannot modify the exclusive territory without the franchisee's consent.
For a multiple-unit arrangement, the franchisee is granted the exclusive right to establish franchises in a defined trade area, with the exact size and boundaries negotiated prior to the execution of the Development Agreement. This area will be defined by streets and highways and may include a portion of a city or one or more counties or cities. As long as the franchisee complies with the development schedule, B Bops and its affiliates are prohibited from establishing company-owned restaurants or granting franchises to third parties within the trade area. However, upon termination of the Development Agreement, these exclusive development rights are rescinded, except for the exclusive territory granted for individual franchises already established.