What is the B Bops franchisee's obligation regarding the noncompete covenant?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
COVENANT NOT TO COMPETE.
Franchisee hereby acknowledges and agrees as follows:
- A.
That during the Term 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 at any location in a business the same as or substantially similar to that of a B-Bop's Restaurant (except for any other B-Bop's Restaurant owned and operated by Franchisee pursuant to a franchise agreement with Company);
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, as a franchisee, you, along with your directors, officers, shareholders, partners, members, employees, and agents, are restricted from engaging in any business that is the same as or substantially similar to a B Bops Restaurant. This restriction applies during the term of the Franchise Agreement and extends to any location, unless it's another B Bops Restaurant owned and operated by you under a separate franchise agreement with B Bops.
This non-compete obligation ensures that franchisees focus their efforts solely on their B Bops franchise and prevents them from using the franchisor's confidential information and business model to compete against the B Bops system. The personal guaranty also binds partners, shareholders, or members of the franchisee to the non-compete covenants, making them personally liable for any breaches.
This type of non-compete agreement is standard practice in franchising to protect the brand and prevent franchisees from directly competing with the system, either during the franchise term or for a specified period after the agreement ends. Prospective franchisees should carefully consider the scope and duration of the non-compete clause to understand its potential impact on their future business activities.