During the term of the B Bops Development Agreement, where am I prohibited from being involved in a business substantially similar to a B Bops Restaurant?
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. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to the 2025 FDD, during the term of the B Bops Development Agreement, you are prohibited from involvement in a business substantially similar to a B Bops Restaurant at any location. This non-compete clause is in effect for the entire duration of the Development Agreement.
This means that as a B Bops developer, you cannot own, operate, or be involved with any competing restaurant concept, regardless of its location. This restriction is broad and applies to any business deemed substantially similar to B Bops.
After the Development Agreement terminates or expires, the non-competition covenant changes. It restricts involvement in a similar business for two years within the trade area specified in the Development Agreement or within 20 miles of any operating or developing B Bops Restaurant. However, this post-term restriction does not prevent you from continuing to operate a B Bops Restaurant under a separate Franchise Agreement entered into before the termination or expiration of the development rights.