After termination of the B Bops agreement, is a franchisee prohibited from being a consultant for a business substantially similar to B Bops?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
th 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.
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in a business substantially similar to B Bops for a period of two years after the termination or expiration of the franchise agreement. This restriction applies to the franchisee, their directors, officers, shareholders, partners, members, employees, and agents.
Specifically, the franchisee is prohibited from acting as a director, officer, shareholder, proprietor, partner, consultant, employee, or in any other capacity for a business that is the same as or substantially similar to a B Bops restaurant. This restriction is limited to a 20-mile radius of the former B Bops franchise location or any other B Bops restaurant in operation or under development. However, this does not apply to other B Bops restaurants owned and operated by the franchisee under a separate franchise agreement with the company.
The FDD defines a business as "substantially similar to a B-Bop's Restaurant" if it involves preparing and serving any food item that is part of B Bops's standard menu. However, if a court determines that the time period or geographic area of the non-compete clause is excessive, the court can modify these terms to what it deems reasonable. The franchisee acknowledges that these restrictions are fair and necessary to protect B Bops's interests in its system and trademarks.