Is there a requirement under the B Bops Franchise Agreement that B Bops must pay a franchisee compensation for soliciting orders from customers residing within their exclusive territory?

According to B Bops's 2025 Franchise Disclosure Document, there is no requirement for B Bops or its affiliates to compensate a franchisee for soliciting or accepting orders from customers within the franchisee's exclusive territory. This means that B Bops retains the right to market to customers within a franchisee's territory without having to pay the franchisee any compensation. This applies to both the single-unit and multiple-unit franchise arrangements.

B Bops, and its affiliates, can use various channels of distribution, including direct marketing, to reach customers, even those residing within a franchisee's exclusive territory. While B Bops reserves this right, the FDD states that they do not currently have plans to operate or franchise a fast-food business under a different trademark. However, they could potentially market under the existing B Bops trademark or other trademarks in the future.

For a prospective franchisee, this means that while you are granted an exclusive territory, B Bops can still directly compete for customers within that territory. This could impact your sales and profitability, as customers in your territory could be ordering directly from B Bops through online channels or other direct marketing efforts. It is important to consider this potential competition when evaluating the B Bops franchise opportunity.

This type of arrangement is not uncommon in franchising, as franchisors often want to maintain control over their brand and marketing efforts. However, it is crucial for franchisees to understand the extent to which the franchisor can compete within their territory and how that might affect their business. Prospective franchisees should discuss this with B Bops to understand their marketing strategies and how they plan to support franchisees in maintaining their market share.