exception

During the term of the agreement, is a B Bops developer permitted to engage in a business substantially similar to a B Bops Restaurant if it's a unit owned under a Unit Franchise Agreement?

B_Bops Franchise · 2025 FDD

Answer from 2025 FDD Document

T NOT TO COMPETE.

  • A. Developer hereby agrees that during the term of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant, except for any Unit owned and operated by Developer pursuant to a Unit Franchise Agreement entered into between the parties hereto.
  • B. Developer hereby agrees that for a period of two (2) years immediately following the termination or expiration of this Agreement, Developer, its directors, officers, shareholders, partners, members, principals or agents will not, directly or indirectly, enter into or engage in any business the same as or substantially similar to a B-Bop's Restaurant operating at any location within the Trade Area or within a twenty (20) mile radius of any other B-Bop's Restaurant then in operation or under construction, whether owned and operated by Company, any affiliate of Company or by a franchisee under license granted by Company, except that Developer shall be entitled to continue to own and operate any Unit pursuant to a Unit Franchise Agreement entered into between the parties hereto.

  • C. For purposes of this Section 12, a business shall be deemed the "same as or substantially similar to a B-Bop's Restaurant" if the business is engaged in preparing and serving to the public any food items included from time to time as a standard menu item for a B-Bop's Restaurant.
    1. ASSIGNMENT BY DEVELOPER.

Source: Item 23 — RECEIPTS (FDD pages 53–145)

What This Means (2025 FDD)

According to B Bops's 2025 Franchise Disclosure Document, a developer is permitted to engage in a business substantially similar to a B Bops Restaurant during the term of the Development Agreement if it's a unit owned and operated under a Unit Franchise Agreement with B Bops. This exception to the non-compete clause allows developers to operate existing B Bops units without violating the agreement.

However, for a period of two years following the termination or expiration of the Development Agreement, the developer is restricted from engaging in a similar business within the Trade Area or within a 20-mile radius of any B Bops Restaurant. An exception exists that allows the developer to continue owning and operating any unit pursuant to a Unit Franchise Agreement entered into with B Bops.

The FDD specifies that a business is considered "the same as or substantially similar to a B-Bop's Restaurant" if it involves preparing and serving food items that are standard menu items at a B Bops Restaurant. This definition clarifies the scope of the non-compete obligations, focusing on businesses that directly compete with B Bops's core offerings.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.