What sections of the B Bops franchise agreement define the restrictions included in the nondisclosure and noncompetition agreement required for transfer?

According to B Bops' 2025 Franchise Disclosure Document, Section 17 of the franchise agreement outlines the restrictions included in the nondisclosure and noncompetition agreement required for transfer. Specifically, to transfer a B Bops franchise, the franchisee (and potentially their partners, shareholders, or members) must execute a nondisclosure and noncompetition agreement in favor of B Bops. This agreement must contain the restrictions detailed in Sections 16 and 17 of the franchise agreement.

Section 17 details the covenant not to compete, which includes restrictions during the term of the agreement and for a period of two years after termination or expiration. During the term, franchisees (including their directors, officers, shareholders, partners, members, employees, and agents) cannot engage in any business that is the same as or substantially similar to a B Bops Restaurant, except for other B Bops Restaurants they own under a franchise agreement with the company. After the agreement ends, this restriction extends for two years within a 20-mile radius of the franchised location or any other B Bops Restaurant in operation or under development.

Additionally, during the term and for two years afterward, franchisees are prohibited from employing or soliciting employees of B Bops or other franchisees, requesting customers to terminate their relationship with B Bops or other franchisees, or requesting other franchisees to terminate their relationship with B Bops. The agreement defines a business as "substantially similar to a B-Bop's Restaurant" if it prepares and serves any food item that is a standard menu item at B Bops. These restrictions aim to protect B Bops' interests by preventing franchisees from using confidential information or competing unfairly during and after their franchise agreement.