What is the geographic radius of the non-compete restriction after the termination or expiration of the B Bops franchise agreement?
B_Bops Franchise · 2025 FDDAnswer 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, after the termination or expiration of the franchise agreement, the franchisee is subject to a non-compete restriction. This restriction prevents the franchisee, including their directors, officers, shareholders, partners, members, employees, and agents, from engaging in any business that is the same as or substantially similar to a B Bops restaurant. This restriction applies for a period of two years.
The geographic scope of this non-compete is defined as within a twenty (20) mile radius of either the former franchise premises or any other B Bops restaurant that is currently in operation or under development. An exception exists for any other B Bops restaurant that the franchisee owns and operates under a separate franchise agreement with the company.
The FDD also specifies that a business is considered "the same as or substantially similar to a B-Bop's Restaurant" if it prepares and serves any food item that is included as a standard menu item for a B Bops restaurant. However, if a court finds the time period or geographic area of the non-compete to be excessive or unreasonable, the parties agree that the court's determination of a reasonable time period or geographic area will apply.