What is the radius around a B Bops Restaurant that triggers the non-compete after termination or expiration of the development rights?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| M. Conditions for the Company approval of transfer | Section 13 | Proposed transferee must satisfy the Company's current standards for new developers; assumption of Development Agreement; execution of general release (to the extent permitted by Minnesota law) and nondisclosure and noncompetition agreement; payment of $3,000 transfer fee; compliance with transfer provisions of Franchise Agreement if any Franchises simultaneously being transferred; and compliance with right of first refusal granted to the Company. |
|---|---|---|
| N. The Company's right of first refusal to acquire your development rights | Section 13(D) | The Company has the right to purchase the development rights or any ownership interest in the entity owning the development rights upon the same terms and conditions as contained in any bona fide offer received from a third party. |
| O. The Company's option to | None | Not applicable. |
| purchase your development | ||
| rights | ||
| P. Your death or disability | Section 13(B) | The development rights, or any controlling interest in any entity owning the development rights, must be transferred to an approved transferee, with the Company to be notified of the proposed transferee within six (6) months of death or disability. |
| Q. Non-competition covenants | Section 12 | No involvement in a business substantially |
| during the term of the | similar to a B-Bop's Restaurant at any | |
| Development Agreement | location. | |
| R. Non-competition covenants after the development rights are terminated or expire | Section 12 | No involvement in a business substantially similar to a B-Bop's Restaurant for two (2) years after termination or expiration within: (i) the trade area specified in the Development Agreement; or (ii) 20 miles of any other B-Bop's Restaurant then in operation or under development, except that you will be entitled to continue to operate any B-Bop's Restaurant pursuant to a Franchise Agreement entered into with the Company prior to termination or expiration of the development rights. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, after the development rights are terminated or expire, a franchisee cannot be involved in a business substantially similar to a B Bops Restaurant for two years. This non-compete restriction applies within the trade area specified in the Development Agreement or within 20 miles of any other B Bops Restaurant that is then in operation or under development. However, this restriction does not prevent a franchisee from continuing to operate a B Bops Restaurant under a Franchise Agreement entered into with the company before the termination or expiration of the development rights.
This means that if a B Bops franchisee's development rights are terminated or expire, they are restricted from opening or working for a competing restaurant within the defined area. The non-compete aims to protect B Bops's market and brand presence by preventing former franchisees from using their knowledge of the B Bops system to benefit a competitor. The specific trade area will be outlined in the Development Agreement, so prospective franchisees should carefully review this document to understand the exact geographic scope of the non-compete.
It is important to note the exception that allows a franchisee to continue operating a B Bops Restaurant if they have a separate Franchise Agreement in place. This ensures that franchisees who have already invested in and established a B Bops location are not forced to close their business due to the termination or expiration of their development rights. Prospective franchisees should consider the implications of this non-compete clause and how it might affect their future business opportunities if their relationship with B Bops ends.