Does the B Bops non-compete apply to businesses within the Trade Area of a B Bops Restaurant?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
e parties hereto.
- B. Developer hereby agrees that for a period of two (2) years immediately following the termination or expiration of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant operating at any location within the Trade Area or within a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under construction, whether owned and operated by Company, any affiliate of Company or by a franchisee under license granted by Company, except that Developer shall be entitled to continue to own and operate any Unit pursuant to a Unit Franchise Agreement entered into between the parties hereto.
- C. For purposes of this Section 12, a business shall be deemed the "same as or substantially similar to a B-Bop's Restaurant" if the business is engaged in preparing and serving to the public any food items included from time to time as a standard menu item for a B-Bop's Restaurant.
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- ASSIGNMENT BY DEVELOPER.
Source: Item 23 — RECEIPTS (FDD pages 53–145)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the non-compete agreement does apply to businesses within the Trade Area of a B Bops Restaurant. Specifically, during the term of the Development Agreement, the developer (franchisee) agrees not to engage in any business the same as or substantially similar to a B Bops Restaurant, except for units they own and operate under a Unit Franchise Agreement.
Post-termination or expiration of the Development Agreement, the franchisee is restricted from engaging in a similar business within the Trade Area or within a 20-mile radius of any B Bops Restaurant. This restriction lasts for two years. The exception is that the franchisee can continue operating any Unit under a Unit Franchise Agreement they have with B Bops.
The FDD defines a business as "the same as or substantially similar to a B-Bop's Restaurant" if it prepares and serves any food items that are standard menu items at a B Bops Restaurant. This definition is important because it clarifies the scope of the non-compete, focusing on direct competition through similar menu offerings.