In the B Bops franchise agreement, what information must the franchisee provide when signing as an individual?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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. In the event Franchisee is a natural person, Franchisee represents and warrants that he has available to him sufficient other means of support and that observance of the covenants contained in this Section 17 will not deprive him of his ability to earn a livelihood or support his dependents. The provisions of this Section 17 shall survive the termination or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, if a franchisee is a natural person, they must represent and warrant that they have sufficient means of support available to them. They must also confirm that adhering to the non-compete agreements will not deprive them of their ability to earn a living or support their dependents. This representation is part of Section 17 of the franchise agreement and survives the termination or expiration of the agreement.
This requirement ensures that individuals entering into a B Bops franchise are aware of and prepared for the financial implications of the non-compete clause. The non-compete clause restricts the franchisee from engaging in similar businesses during the term of the agreement and even after termination, so B Bops wants to ensure this restriction doesn't leave the franchisee without means of support.
This is a fairly standard practice in franchising, as franchisors want to avoid potential legal challenges to non-compete agreements. By having the franchisee acknowledge their ability to support themselves despite the restrictions, B Bops aims to strengthen the enforceability of the non-compete clause. Prospective franchisees should carefully consider their financial situation and future earning potential before signing the agreement, ensuring they can meet this representation truthfully.