What is the prohibited action for the Company regarding licensing third parties to establish B Bops Restaurants in the Trade Area?

According to B Bops's 2025 Franchise Disclosure Document, the company agrees not to establish or license any third party to establish a B Bops Restaurant in the Trade Area before the termination or expiration of the agreement with the developer. This agreement ensures that the developer has the exclusive right to develop B Bops Restaurants within the Trade Area, as long as the agreement is active.

This clause protects the developer's investment and market exclusivity during the term of the agreement. It prevents B Bops from undermining the developer's efforts by opening competing locations or allowing other franchisees to do so within the designated Trade Area. The developer can be confident that they are the sole authorized party to establish B Bops restaurants in that area.

However, this protection is only valid until the agreement terminates or expires. After that, B Bops is free to establish or license others to establish B Bops Restaurants in the Trade Area. Therefore, it is crucial for the developer to understand the terms and conditions of the agreement, including the duration and renewal options, to fully assess the long-term potential of their investment.