Does the B Bops non-compete agreement prevent a franchisee from owning another B Bops Restaurant under a separate franchise agreement?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the non-compete agreement does not prevent a franchisee from owning another B Bops Restaurant under a separate franchise agreement with the company during the term of the agreement. Specifically, the franchisee, including its 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.
However, this restriction has a notable exception. The non-compete clause explicitly states that it does not apply to "any other B-Bop's Restaurant owned and operated by Franchisee pursuant to a franchise agreement with Company." This provision allows a franchisee to own and operate multiple B Bops Restaurants under separate franchise agreements without violating the non-compete terms during the term of the franchise agreement.
After the termination or expiration of the franchise agreement, a similar exception applies within a 20-mile radius of the original franchise premises or any other B Bops Restaurant. The franchisee is still allowed to operate other B Bops Restaurants they own under separate agreements. This ensures that franchisees can continue to operate their other franchised locations even after one agreement ends, providing a degree of security and growth potential within the B Bops franchise system.