What section of the B Bops franchise agreement contains the covenant not to compete?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
COVENANT NOT TO COMPETE.
Franchisee hereby acknowledges and agrees as follows:
- A.
That during the Term of this Agreement, Franchisee, its directors, officers, shareholders, partners, members, employees and agents will not, directly or indirectly, enter into or engage in any business as a director, officer, shareholder, proprietor, partner, consultant, employee or in any other position or capacity, which business is engaged at any location in a business the same as or substantially similar to that of a B-Bop's Restaurant (except for any other B-Bop's Restaurant owned and operated by Franchisee pursuant to a franchise agreement with Company);
- B.
That for a period of two (2) years immediately following the termination or expiration of this Agreement, Franchisee, its directors, officers, shareholders, partners, members, employees and agents will not, directly or indirectly, enter into or engage in any business as a director, officer, shareholder, proprietor, partner, consultant, employee or in any other position or capacity, which business is engaged in a business the same as or substantially similar to that of a B-Bop's Restaurant within: (i) a twenty (20) mile radius of the Franchise Premises; or (ii) a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under development (except for any other B-Bop's Restaurant owned and operated by Franchisee pursuant to a franchise agreement with Company);
- C.
That during the Term of this Agreement and for a period of two (2) years thereafter, Franchisee, its directors, officers, shareholders, partners, members, employees or agents acting individually or through others, will not, directly or indirectly: (i) employ (or contact or solicit for the purpose of seeking to employ) any then current employee of Company or of any other franchisee; (ii) request that any customer of Company or any other franchisee cancel or terminate their business or their relationship with Company or such other franchisee; or (iii) request that any other authorized franchisee of Company cancel or terminate its relationship with Company;
- D.
For purposes of this Section 17, a business will be deemed to be the "same as or substantially similar to a B-Bop's Restaurant" if it is engaged in preparing and serving to the public any food item from time to time included as a standard menu item for a B-Bop's Restaurant.
- E.
In the event any court of competent jurisdiction makes a final determination that the time period set forth in this Section 17 is excessive, or that the geographic area set forth herein is unreasonable, and said court makes a determination as to a reasonable time period or geographic area, the parties hereto agree that for purposes of this Agreement, the period of time and/or geographic area shall be that which has been determined to be reasonable by such court.
Franchisee acknowledges that the time and geographic restrictions set forth herein are fair and reasonable restrictions that provide necessary protection of
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, the covenant not to compete is detailed in Section 17 of the franchise agreement. This section outlines restrictions on the franchisee's ability to engage in similar businesses during the term of the agreement and for a period after its termination.
During the term of the agreement, the franchisee is prohibited from being involved in any business that is the same as or substantially similar to a B Bops restaurant, except for other B Bops restaurants they operate under a franchise agreement with the company. After the agreement terminates or expires, this restriction continues for two years within a 20-mile radius of the franchise premises or any other B Bops restaurant in operation or under development.
The covenant also prevents franchisees from soliciting or employing B Bops's employees or interfering with the relationships between B Bops and its customers or other franchisees during the term and for two years after. The agreement defines a business as "substantially similar" to a B Bops if it serves any food item included in B Bops's standard menu. The agreement also states that if a court finds the time or geographic restrictions unreasonable, the parties agree to accept a reasonable determination made by the court. These restrictions are acknowledged by the franchisee as fair and necessary to protect B Bops's interests in its system and marks.