Can B Bops operate a B Bops Restaurant for its own account within the restricted area?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
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- EXCLUSIVITY. Company shall not during the Term of this Agreement open or franchise another B-Bop's Restaurant or any other restaurant business serving similar items within a two (2) mile radius of the Franchise Premises. Company reserves the right to grant and sell franchises to others to operate, and to own and operate for its own account or with others, a B-Bop's Restaurant at any location other than as restricted in this Section 3.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, B Bops is restricted from opening or franchising another B Bops Restaurant, or any similar restaurant, within a two-mile radius of a franchisee's location. However, B Bops retains the right to grant and sell franchises to others, and to own and operate a B Bops Restaurant for its own account outside of this restricted two-mile radius. This means that while B Bops cannot directly compete with a franchisee within their protected territory, they are not prohibited from operating their own restaurants in other locations.
This clause protects the franchisee by preventing direct competition from the franchisor within a defined area, which is a common practice in franchising. The two-mile radius provides a local monopoly for the franchisee, allowing them to establish their business without immediate competition from other B Bops outlets. However, franchisees should be aware that B Bops can still expand its corporate-owned locations outside of these restricted areas, potentially impacting the overall market presence of the brand.
For a prospective franchisee, this exclusivity clause offers a degree of security, but it's essential to consider the broader market strategy of B Bops. Understanding where B Bops plans to open corporate stores can help a franchisee assess the long-term competitive landscape and potential for growth in their specific market. It is also important to note that the exclusivity is only valid during the term of the agreement.