Are there non-competition covenants after the B Bops agreement terminates or expires?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
| N. The Company's right of First Refusal to acquire your business | None | Not Applicable. |
|---|---|---|
| O. The Company's option to | None | Not Applicable. |
| Purchase your business | ||
| P. Your death and | None | Not Applicable. |
| Disability | ||
| Q. Non-Competition covenants | None | Not Applicable. |
| during the term of the | ||
| agreement | ||
| R. Non-Competition covenants | None | Not Applicable. |
| after the agreement | ||
| terminates or expires |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–49)
What This Means (2025 FDD)
According to the 2025 B Bops Franchise Disclosure Document, there are no non-competition covenants in place after the agreement terminates or expires. The FDD indicates that under the section addressing non-competition covenants after the agreement terminates or expires, the response is "None" and is marked as "Not Applicable."
This means that once a franchisee's agreement with B Bops ends, whether through termination or expiration, the franchisee is not restricted by the franchise agreement from engaging in any business activities, including those that may compete with B Bops. This provides franchisees with more flexibility in their future business endeavors after their franchise term concludes.
It is important to note that while there are no post-term non-compete covenants, the FDD also states that during the term of the agreement, franchisees are prohibited from involvement in a business substantially similar to a B Bops Restaurant at any location. Therefore, the absence of post-term restrictions does not negate the existence of non-compete obligations while the franchise agreement is active.