During the term of the B Bops agreement, can the franchisee engage in a business substantially similar to a B Bops Restaurant?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
grees 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees are restricted from engaging in any business that is the same as or substantially similar to a B Bops Restaurant during the term of the franchise agreement. Specifically, the franchisee, including its directors, officers, shareholders, partners, members, employees, and agents, cannot directly or indirectly participate in such a business in any capacity. An exception exists if the franchisee owns and operates another B Bops Restaurant under a separate franchise agreement with the company.
B Bops defines a business as "substantially similar" if it involves preparing and serving any food item that is part of the standard B Bops Restaurant menu. This restriction applies at any location. This non-compete agreement is in place to protect B Bops's market position and confidential business information.
After the franchise agreement terminates or expires, the franchisee is still restricted from engaging in a similar business for a period of two years. This post-term restriction applies within a 20-mile radius of the former B Bops location or any other B Bops Restaurant in operation or under development. If a court finds these restrictions to be excessive, the court may determine a reasonable time period or geographic area, which the parties agree to abide by.