Are there any restrictions on the customers that may be served by a B Bops franchise?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
There are no restrictions on the customers that may be served by your Franchise and you may solicit or accept orders from customers outside of your exclusive territory and you have the right to use other channels of distribution, such as the Internet or other methods of direct marketing to make sales outside of your exclusive territory. Similarly, there are no restrictions on the Company or its affiliates on the customers that may be served by any B-Bop's Restaurant that either of them may establish (consistent with the exclusive territorial rights granted to you under the Franchise Agreement), including customers that may reside in the exclusive territory granted to you. The Company and its affiliates have never used, but do reserve the right to use, other channels of distribution, including other methods of direct marketing to make sales to customers under the "B-Bop's" trademark, including customers residing within your exclusive territory. The Company and its affiliates have not used, but do reserve the right to use, other channels of distribution, including other methods of direct marketing, to make sales to customers under trademarks different from the "B-Bop's" trademark, including customers residing within your exclusive territory; provided, however, as noted above neither the Company nor any of the affiliates have any presently formulated plans to operate or franchise the operation of a fast food business under a different trademark. There is no requirement under the Franchise Agreement or otherwise that the Company or any of its affiliates must pay you any compensation for soliciting or accepting orders from customers residing within your exclusive territory.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, there are no restrictions on the customers that a franchisee may serve. B Bops franchisees can solicit and accept orders from any customer, even those outside their exclusive territory. Franchisees also have the right to use various distribution channels, such as the Internet or direct marketing, to make sales outside of their exclusive territory.
Similarly, B Bops itself and its affiliates are not restricted in terms of the customers they can serve, even those residing within a franchisee's exclusive territory. B Bops retains the right to use various distribution channels, including direct marketing, to make sales to customers under the "B-Bop's" trademark, even those within a franchisee's territory. However, the document states that B Bops and its affiliates do not have any current plans to operate or franchise a fast-food business under a different trademark.
It is important to note that the Franchise Agreement does not require 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 while franchisees have the freedom to serve any customer, they may face competition from B Bops itself within their own territory without receiving any compensation.