definition

For the B Bops non-compete, what constitutes 'engaging in' a similar business?

B_Bops Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 23 — RECEIPTS (FDD pages 53–145)

What This Means (2025 FDD)

According to the 2025 B Bops Franchise Disclosure Document, a business is considered the "same as or substantially similar to a B-Bop's Restaurant" if it is involved in preparing and serving food items to the public that are included as standard menu items at a B Bops Restaurant.

This definition is important for prospective franchisees because it clarifies the scope of the non-compete agreement. During the term of the agreement and for two years after, franchisees are restricted from engaging in businesses that directly compete with B Bops. This restriction applies to the Trade Area or within a twenty (20) mile radius of any other B Bops Restaurant.

Therefore, if a franchisee were to operate another restaurant that offers similar food items found on the B Bops menu, it would be considered a violation of the non-compete agreement. This clause protects B Bops' market share and prevents franchisees from using the franchisor's knowledge and resources to directly compete, even after the franchise agreement ends. Franchisees should carefully consider this restriction and ensure that any other business ventures they pursue do not fall within this definition.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.