Are there any restrictions on B Bops regarding the customers that may be served by a company-owned B Bops Restaurant?
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.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, there are generally no restrictions on the customers that may be served by a company-owned B Bops Restaurant. This means that B Bops itself, or its affiliates, can serve any customer, even those residing within a franchisee's exclusive territory. However, this is consistent with the exclusive territorial rights granted to the franchisee. This policy allows B Bops to maximize its reach and sales potential without being limited by geographical boundaries.
B Bops also reserves the right to use other channels of distribution, including direct marketing, to make sales to customers under the "B-Bop's" trademark, even those within a franchisee's territory. While B Bops has never done so, they retain the option to use these methods. This could potentially create competition for franchisees within their own territories, as the company could directly solicit customers in those areas. However, the FDD states that B Bops has no current plans to operate or franchise a fast-food business under a different trademark.
It is important for prospective franchisees to understand that while they are granted an exclusive territory, B Bops retains the right to serve customers within that territory through company-owned restaurants and other distribution channels. This is a fairly common practice in franchising, as franchisors often want to maintain flexibility and control over their brand's reach. Franchisees should consider this when evaluating the potential for competition within their exclusive territory and assess how B Bops's distribution strategies might impact their business.